NEW YORK, NY - MacAndrews & Forbes Holdings Inc. and The Renco Group, Inc. today announced the formation and capitalization of a new venture that will own AM General LLC. AM General LLC is a world-leader in the design, engineering, production and technical and parts support of military and special purpose vehicles, including the HUMVEE® all-terrain military vehicle and its two commercial counterparts, the HUMMER® H1 and H2 sport utility vehicles.
In the transaction, Renco contributed all of the outstanding membership interests of AM General LLC to the new venture and MacAndrews AMG Holdings LLC, an affiliate of MacAndrews & Forbes, contributed cash. MacAndrews AMG Holdings LLC will be the managing member of the venture with discretion to oversee the management of the AM General business, subject to certain consent rights of Renco. AM General's current management team, led by James Armour, will continue to run AM General’s day-to-day operations, which will continue without interruption.
AM General refinanced its outstanding debt with a new senior credit facility provided by Citigroup and a syndicate of financial institutions arranged by Citigroup in connection with the transaction.
Commenting on today's announcement, Armour, AM General's President and Chief Executive Officer, said, “I am excited about the opportunity to work with Ronald Perelman and MacAndrews & Forbes. We will take full advantage of MacAndrews' extensive resources and talents as AM General continues its growth and development.”
About AM General LLC
AM General was incorporated in 1971 as a wholly owned subsidiary of the American Motors Corporation, although its roots can be traced back to 1903. The company was given independent status to fulfill US government transportation requirements and to pursue further diversification. AM General has built various military and commercial vehicles during its history.
In 1985, the company began deliveries of the new High Mobility Multipurpose Wheeled Vehicle (HMMWV, pronounced HUMVEE), a 1.25-ton truck to replace many of the military’s light tactical vehicles. AM General has delivered more than 180,000 of the versatile 4-wheel drive vehicles to the US Armed Forces and more than 40 friendly overseas nations.
In 1992, the company began production of the HUMMER for civilian use, known as the “world’s most serious 4x4.” In 1999, AM General and General Motors Corporation finalized an agreement to jointly pursue product, marketing and distribution opportunities for HUMMER. GM acquired the exclusive ownership of the HUMMER brand worldwide. The current HUMMER was renamed HUMMER H1. In 2002, AM General began assembling the HUMMER H2 sport utility vehicle designed by GM, at a new factory in Mishawaka, Indiana.
Headquartered in South Bend, Ind., AM General operates two manufacturing facilities in Mishawaka, and an Engineering and Product Development Center in Livonia, Mich. The company’s wholly owned subsidiary, General Engine Products, Inc., in Franklin, Ohio, builds 6.5-liter diesel engines. AM General also provides spare parts, field service and training support for all its products, and its Livonia facility provides system technical support for several military vehicles systems in addition to the HUMVEE.
About MacAndrews & Forbes Holdings Inc.
MacAndrews & Forbes Holdings Inc. is a private diversified holding company with interests in consumer products, gaming, entertainment, financial services, private security, medical devices, biotechnology and other industries. Among the companies in which it holds interests are Revlon, M&F Worldwide, Panavision, Allied Security and Scientific Games Corporation.
About The Renco Group, Inc.
The Renco Group, Inc. is a private diversified holding company with interests in mining, metal production, material handling and other businesses. Among the companies in which it holds interests are The Doe Run Resources Corporation, WCI Steel, Inc., US Magnesium LLC and UNARCO Material Handling, Inc.
