KPS Capital Partners to Acquire AM General LLC

23 July 2020

KPS Capital Partners, LP ("KPS") announced that, through a newly formed affiliate, it has entered into a definitive agreement for the acquisition of AM General LLC ("AM General" or the "company") of an affiliate of MacAndrews & Forbes Incorporated. The financial terms of the transaction were not disclosed.

AM General designs, builds, manufactures, supplies and technically assists specialized vehicles for military and commercial customers around the world, including the iconic high-mobility multi-purpose wheeled vehicle familiarly known as the HUMVEE®. The company is a global leader in ground vehicle systems, and its military business is widely recognized for excellence in tactical vehicle design, engineering, manufacturing, and logistics assistance. AM General has built and maintained more than one million vehicles in the last 100 years and more than 300,000 automotive systems in more than 70 countries. Today AM General builds more military light tactical vehicles than any other company in the world. Headquartered in South Bend, Indiana, manufacturing plants located in Indiana and Ohio , and an advanced technical engineering center in Michigan, AM General employs a strong workforce and partners with more than 1,700 suppliers in 43 states.

Jay Bernstein , KPS Partner, stated: "We are excited to acquire AM General, a legendary American company and world leader in the design, engineering, manufacturing and technical assistance of specialized and light tactical vehicles. We look forward to working with the director executive Andy Hove, the company's management team and all AM General employees to strengthen this magnificent platform, organically and through acquisitions. We intend to take advantage of the company's commitment to research, technology, innovation and the development of new products, as well as its legacy and its emblematic brand. KPS's proven track record and track record in successfully investing in specialty vehicle companies - as well as its global platform and significant financial resources - make us feel extremely confident that AM General will continue to prosper under KPS ownership for the benefit of its customers and all stakeholders concerned. "

Andy Hove , CEO of AM General, said: "KPS, with a decades-long history of building world-class and industry-leading companies, is the ideal partner for AM General and the business and military customers we serve. We look forward to working with KPS to continue executing our strategy and investing in our very ambitious growth plan. KPS's demonstrated commitment to manufacturing excellence and continuous improvement, and a commitment to invest in technology and innovation will do nothing but strengthen the company's ability to compete in today's commercial and military market. "

The completion of the transaction is scheduled for the third or fourth quarter of 2020 and is subject to the usual approvals and closing conditions.

Kirkland & Ellis served as legal advisor to KPS and its affiliates.

About AM General LLC
AM General is the world leader in light tactical vehicle design, engineering, manufacturing, and support. AM General is the designer and sole manufacturer of the HUMVEE®, the global leader in military 4x4s. AM General, through its traditional companies, has built and maintained more than a million vehicles in the last 100 years and more than 300,000 automotive systems in more than 70 countries. AM General is headquartered in South Bend , Illinois . For more information on AM General, visit .

Acerca de KPS Capital Partners, LP
KPS, mediante sus entidades de gestión afiliadas, es el administrador de KPS Special Situations Funds, una familia de fondos de inversión que posee aproximadamente $11,4 mil millones en activos administrados (al 31 de marzo de 2020). Durante más de dos décadas, los socios de KPS han trabajado exclusivamente para lograr una significativa apreciación del capital al hacer inversiones accionarias con participación mayoritaria en empresas industriales y manufactureras en una diversa gama de sectores, entre ellos materiales básicos; productos de lujo, de atención médica y de consumo de marca; repuestos de automóviles, bienes de capital y manufactura en general. KPS crea valor para sus inversionistas al trabajar de manera constructiva con talentosos equipos de gerencia para mejorar las empresas, y genera rentabilidad de la inversión al mejorar estructuralmente la posición estratégica, la competitividad y la rentabilidad de las empresas de su cartera, en lugar de depender principalmente del apalancamiento financiero. Las empresas de la cartera de KPS Funds actualmente tienen ingresos anuales totales de aproximadamente $8,4 mil millones, operan 150 plantas manufactureras en 26 países, y tienen más de 23.000 empleados, directamente y mediante empresas conjuntas en todo el mundo. La estrategia de inversión y las empresas de la cartera de KPS se describen en detalle en