KPS Capital to Buy Humvee Maker AM General from Macandrews

DEALS KPS Capital to Buy Humvee Maker AM General From MacAndrews & Forbes KPS’s purchase of AM General dovetails with its experience investing in specialty vehicles and components

By COLIN KELLAHER General Motors Co. acquired and Motor Coach Industries Inter- the civilian version of the vehicle, national Inc. Private-equity firm KPS Capital which it marketed under the Mr. Bernstein said the AM Partners LP on Wednesday said it Hummer brand, in the late 1990s. General deal “creates a very strong agreed to buy Humvee maker AM GM discontinued the brand in 2010 foundation for us to invest heavily” General LLC from MacAndrews & in the wake of the auto maker’s in the light tactical and specialty Forbes Inc., the investment firm of bankruptcy, but earlier this year vehicles business, adding that billionaire Ronald Perelman, for an said it would resurrect the Hummer KPS plans to build on the platform undisclosed amount. name on an all-electric pickup organically and through acquisi- The deal follows KPS’s agree- ment earlier this week to buy the truck to be sold under the GMC tions. assets of bankrupt engine maker brand. The AM General deal marks KPS’s Briggs & Stratton Corp. and comes New York-based KPS, which second acquisition of a well-known as MacAndrews & Forbes moves to manages a family of investment American business name this week. reshape its portfolio amid fallout funds with about $11.4 billion of On Monday, the firm said it would from the coronavirus pandemic. assets under management, said acquire Briggs & Stratton’s assets “Due to changes in the world both it expects to complete the AM for about $550 million, and it would socially and economically, we have General acquisition in the third or act as the stalking-horse bidder in decided to reset MacAndrews & fourth quarter. KPS is making the a court-supervised sale process Forbes in a manner that will give acquisition out of its fifth flagship after the maker of engines for lawn us maximum flexibility both finan- buyout fund, which wrapped up mowers and other outdoor-mainte- cially and personally,” spokesman late last year with about $6 billion nance equipment filed for chapter Josh Vlasto said in a statement. raised. 11 bankruptcy protection. “With this in mind, we are taking Jay Bernstein, a partner at KPS, In addition to AM General, the steps to explore the sales of certain said the AM General deal “is right MacAndrews & Forbes portfolio assets as well as new opportunities. in our wheelhouse,” given the includes a more than 87% stake in This will allow us to be opportu- firm’s background in the specialty- cosmetics maker Revlon Inc. and nistic and flexible in looking at new vehicle and automotive space. interests in several technology and situations.” KPS currently owns DexKo Global biopharmaceutical companies. MacAndrews & Forbes acquired Inc., a maker and supplier of trailer Last week, the firm said it control of AM General in 2004. components, chassis assemblies planned to explore a sale of its 39% The South Bend, Ind., company and related parts, and Autokiniton stake in Scientific Games Corp. makes specialized vehicles for mili- Global Group, which it created in Mr. Perelman, who is worth more tary and commercial customers, 2018 to pursue investments in the than $7 billion, serves as executive including the High Mobility Multi- global automotive supply industry. chairman of Scientific Games and purpose Wheeled Vehicle, better The firm has previously owned bus- has owned shares in the gaming known as the Humvee. makers New Flyer Industries Inc. company for more than a decade.

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