Cerberus Capital Management has agreed to buy a 70 per cent stake in military vehicle maker Navistar Defense from its listed parent company Navistar International.
The company makes wheeled tactical vehicles for military, law enforcement and government agencies, as well as related support services.
Since 2004 the business has delivered about 37,000 vehicles across 28 countries.
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 defense 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.”
The transaction is expected to close before the end of the year.
Recent activity from distressed PE investor Cerberus includes launching a new operating subsidiary to support the firm’s investments in technology, advanced analytics, and data companies.
The wider firm has more than $35bn in assets across complementary credit, private equity, and real estate strategies.
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