General Dynamics to Acquire AxleTech International
Global manufacturer of heavy duty vehicle components will expand General Dynamics' product
offerings, customer base
FALLS CHURCH, Va. - General Dynamics (NYSE: GD) and The Carlyle Group, a private equity firm,
have entered into a definitive agreement for General Dynamics to acquire AxleTech International, a global
manufacturer and supplier of axles, axle components, planetary axles, independent suspensions, brakes and
aftermarket parts for military vehicles, commercial specialty trucks, and off-highway machines used in the
construction, material handling, forestry, mining and agricultural markets.
The effects of the acquistion on the Burlington, VT, plant are not yet known.
AxleTech International employs approximately 1,000 workers worldwide. It is based in Troy, Michigan,
and has manufacturing facilities in Oshkosh, Wisconsin; Detroit, Michigan; Chicago, Illinois; St. Etienne,
France; and Osasco, Brazil.
The proposed acquisition, which has been approved by both companies, would be immediately accretive to
General Dynamics earnings. The transaction is subject to normal regulatory approvals and is expected to
close by the end of 2008. AxleTech International will become part of Charlotte, North Carolina-based
General Dynamics Armament and Technical Products.
In announcing the acquisition, Charles M. Hall, General Dynamics executive vice president for Combat
Systems, said, "AxleTech International 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. We look forward to
maintaining and strengthening the relationships AxleTech International enjoys with its existing customers,
expanding and diversifying the technical products General Dynamics provides to customers around the
world, and pursuing new markets together through collaboration among the product experts at each
company."
Mary Petrovich, chief executive officer of AxleTech International, said, "We are very pleased to be joining
General Dynamics. The expertise and competencies that each of our companies brings to this relationship
will create a stronger, more-competitive provider of quality vehicle components and subsystems to
customers around the world."
Gregory S. Ledford, Carlyle Managing Director, said, "Carlyle is pleased to have supported AxleTechs
world class management team in its strategic objective of expanding product lines and broadening its
customer base. We are confident AxleTech will continue to prosper as part of General Dynamics."
AxleTech International is a leading supplier of heavy-duty off-road and high-mobility planetary hubreduction
axles, independent suspensions, electric motorized planetary wheel ends, brakes and transfer
cases to original equipment manufacturers (OEMs) on every continent. The company provides service and
support to customers around the world through an extensive network of reliable partners in Europe, Asia,
Africa, the Middle East, South America and Australia.
General Dynamics Armament and Technical Products, a business unit of General Dynamics, is a proven
systems integrator of defense products for all branches of the U.S. Department of Defense and the
Ministries of Defense of over 30 allied nations.
General Dynamics Armament and Technical Products
designs, develops and produces high-performance armament systems, a full range of high-performance
composite products for the aerospace industry, biological and chemical detection systems, advanced sensor
and vision-enhancement systems, and mobile shelter systems.
General Dynamics, headquartered in Falls Church, Va., employs approximately 91,200 people worldwide.
The company is a market leader in business aviation; land and expeditionary combat systems, armaments
and munitions; shipbuilding and marine systems; and information systems and technologies.
The Carlyle Group is a global private equity firm with $91.5 billion of assets under management committed
to 66 funds as of September 30, 2008. Carlyle invests in buyouts, growth capital, real estate and leveraged
finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace &
defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare,
industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the
firm has invested $52.7 billion of equity in 870 transactions for a total purchase price of approximately
$225.8 billion. www.carlyle.com
Certain statements made in this press release, including any statements as to future results of operations
and financial projections, may constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on
management's current expectations, estimates, projections and assumptions. These statements are not
guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.
Therefore, actual future results and trends may differ materially from what is forecast in forward-looking
statements due to a variety of factors. Additional information regarding these factors is contained in the
company's filings with the Securities and Exchange Commission, including, without limitation, its Annual
Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made. The company does not undertake
any obligation to update or publicly release any revisions to any forward-looking statements to reflect
events, circumstances or changes in expectations after the date of this press release.
# # #