General Dynamics [GD] yesterday said it has agreed to acquire AxleTech International, a global manufacturer and supplier of highly engineered axles, wheel ends, brakes and gears for heavy-duty military and commercial vehicles.
Terms of the deal, which is slated to close by year-end, were not disclosed. GD said the purchase would be immediately accretive to its earnings.
Michigan-based AxleTech, which is being acquired from the private equity firm The Carlyle Group, will become part of GD’s Armament and Technical Products business. AxleTech manufactures high-mobility planetary hub-reduction axles, independent suspensions, electric motorized planetary wheel ends, brakes and transfer cases to original equipment manufacturers worldwide.
Earlier this month AxleTech acquired U.S. Gear, a designer and manufacturer of specialized differential gears for military and commercial vehicles.
AxleTech’s sales, which were not disclosed, are evenly split between military and commercial markets. The company’s products are on the Bushmaster light armored vehicle that France’s Thales produces for Australia, the RG33 Mine Resistant Ambush Protected vehicle built by Britain’s BAE Systems for the United States military, and Textron‘s [TXT] M1117 Armored Security Vehicle among others. Axle Tech’s products are also on commercial vehicles such as heavy duty material load handlers and logging vehicles.
“AxleTech is a well run company with a strong management team and a skilled workforce that offers a high value line of quality products to a global customer base,” Charles Hall, executive vice president for GD’s Combat Systems segment, said in a statement. “We look forward to maintaining and strengthening the relationships AxleTech enjoys with its existing customers, expanding and diversifying the technical products GD provides to its customers around the world, and pursuing new markets together through collaboration among the product experts at each company.”
AxleTech has 1,000 employees. The company’s management will remain with GD.