The private equity firm Cerberus Capital Management on Monday said it has agreed to acquire a 70 percent interest in Navistar International Corp.’s [NAV] defense business, which makes tactical wheeled vehicles for military, law enforcement and government customers worldwide.
Terms of the deal, which is expected to close this month, were not disclosed.
“Today’s 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,” Persio Lisboa, chief operating officer with Navistar, said in a statement.
Michael Sanford, co-head of Private Equity and Senior Managing Director of Cerberus, said in a statement about the majority interest position, “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 Illinois-based defense unit of Navistar, which makes trucks and buses, has sold about 37,000 vehicles in 28 countries since 2004.
Navistar’s financial adviser on the deal is Renaissance Strategic Advisors.