Private equity firm Cerberus Capital Management has agreed to buy a majority stake in the defence business of US-based tactical wheeled vehicle original equipment manufacturer Navistar International.
Under a definitive agreement signed by both companies, certain affiliates of Cerberus will acquire a 70% interest in Navistar Defense.
Cerberus senior managing director and private equity co-head Michael Sanford said: “We are excited to partner with Navistar to build upon Navistar Defense’s leadership position in the defence vehicle industry and support its large installed base.
“We look forward to leveraging our financial and operational expertise to execute on strategic initiatives focused on expanding the reach of its industry-leading portfolio and support services.”
Navistar Defense provides tactical and commercial off-the-shelf military vehicles, as well as lifecycle support solutions to military, law enforcement, and government customers across the globe.
Nearly 37,000 vehicles have been delivered by the company in 28 countries since 2004. The company has access to its parent company Navistar’s global dealer network spread across 90 countries.
Navistar chief operating officer Persio Lisboa said: “Navistar Defense strategically complements Cerberus’ existing portfolio and we look forward to collaborating with and supporting the business as it enters its next phase of synergistic growth.”
The acquisition is expected to be completed this year and is dependent on meeting satisfactory customary closing conditions.
Cerberus and Navistar received legal counsel on the transaction from Kirkland & Ellis while Renaissance Strategic Advisors served as strategic advisor to Navistar.