Cerberus Capital Management recently reached a definitive agreement with Navistar International Corporation under which certain affiliates of Cerberus will acquire a 70% interest in Navistar's defense business, Navistar Defense.
Headquartered in Lisle IL, Navistar Defense is a tactical wheeled vehicle original equipment manufacturer serving military, law enforcement and government agencies worldwide. Navistar Defense provides a portfolio of tactical and commercial off-the-shelf military vehicles, as well as custom-tailored lifecycle support solutions.
Since 2004, Navistar Defense has delivered approximately 37,000 vehicles across 28 countries and has access to Navistar's global dealer network across 90 countries.
“We are excited to partner with Navistar to build upon Navistar Defense’s leadership position in the defense vehicle industry and support its large installed base,” said Michael Sanford, co-head of private equity and senior managing director of Cerberus.
“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.”
The transaction is subject to customary closing conditions and is expected to close in 2018.
“(This) announcement is a strategic milestone for Navistar Defense as it provides the business with a well-established, long-term partner that is focused on making crucial growth investments in the business,” said Persio Lisboa, chief operating officer for Navistar. “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.”