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  • Private equity firm buys Humvee-maker AM General

    July 23, 2020 | International, Land

    Private equity firm buys Humvee-maker AM General

    By: Joe Gould and Jen Judson WASHINGTON — Humvee-maker AM General has been acquired by KPS Capital Partners, a private equity firm known for buying financially distressed manufacturers, the companies announced Wednesday. KPS acquired AM General of South Bend, Indiana, from MacAndrews & Forbes in a deal in which terms were not disclosed. AM General has largely been stagnant since losing the competition for the U.S. Army's Joint Light Tactical Vehicle in 2015 to Oshkosh. Following its loss in the JLTV competition, the company turned to the international market to continue growing its Humvee business, such as through offering to foreign customers a multipurpose truck with a military-grade rolling chassis from its Humvee design with a la carte add-ons. KPS Partner Jay Bernstein said in a joint statement that the firm would continue to work with AM General's chief executive, Andy Hove, as well as its management and employees “to build on this great platform, organically and through acquisition.” “We intend to leverage the Company's commitment to research, technology, innovation and new product development, as well as its heritage and iconic brand name,” Bernstein's statement read. Hove said the firm would work with KPS “to continue to execute our strategy and invest in our very ambitious growth plan.” “KPS' demonstrated commitment to manufacturing excellence, continuous improvement and commitment to invest in technology and innovation will only enhance the Company's ability to compete in today's military and commercial marketplace,” Hove said. “Plenty of industrial companies and investment firms had considered buying AM General,” James Hasik, senior fellow at the Center for Government Contracting at George Mason University, told Defense News July 22. “And plenty of companies have considered teaming with AM General for a bid on a forthcoming production program.” AM General has continued to try to adapt to the needs of the U.S. military, bringing a robotic combat vehicle to an Army demonstration last year as the service mulls the future of robots on the battlefield. The company also competed for the Squad Multipurpose Equipment Transport vehicle program but was not selected. Yet, AM General has remained a single-product firm with the Humvee, Hasik noted, and the future of the Humvee is “hard to call.” Many militaries around the world use Humvees, and the U.S. Army plans to keep some in its fleet, but the U.S. Marine Corps is divesting its stock. According to Hasik, it's possible that since the Humvee is less expensive than the JLTV and would likely be relegated to noncombat roles, the Army might choose to purchase pickup trucks instead. “The Humvee was developed in part because the Army's pickup trucks of the 1970s were unimpressive, but that was 50 years ago, and automotive technology has advanced,” he said. “Today's pickup trucks are much cheaper to buy and operate, and that's what the Canadian Army has done.” While AM General has come up with some novel ideas, “nothing has stuck,” Hasik said. For several years, the company has shown up at trade shows touting a howitzer on a Humvee, like it did at London's DSEI exposition in late 2019. Still, the U.S. Army is struggling to figure out how it would fit into formations. The good news for KPS is that the company has a running factory with “efficient, medium-speed production of 4x4 military trucks and a production team who know how to do that,” Hasik said. “That's an important skill set, as it works better for military programs than enlisting a pickup truck factory, which must make them in the hundreds of thousands to make money.” AM General has advertised on its website that it could build bigger trucks, and the Army has just issued a request for information for a program to replace all of its heavy trucks, Hasik pointed out. “It could also build small trucks, similar to the Humvee, for future autonomous applications. There's no guarantee, but we might see lots of those in a few years.” “All in all, I suspect that KPS didn't buy AM General just to wring some more efficiencies out of the Humvee program. The folks there probably see some of these upside possibilities as well,” he added. https://www.defensenews.com/land/2020/07/22/private-equity-firm-buys-humvee-maker-am-general/

  • Pentagon unveils new Ukraine weapons package amid Russian offensive

    May 26, 2024 | International, Land

    Pentagon unveils new Ukraine weapons package amid Russian offensive

    The $275 million aid package includes artillery, anti-tank weapons, mines and other munitions.

  • South Korea to spend $2 billion on aircraft buy

    June 30, 2020 | International, Aerospace

    South Korea to spend $2 billion on aircraft buy

    By: Mike Yeo MELBOURNE, Australia – South Korea is set to acquire more airborne surveillance and intelligence gathering aircraft, as the U.S. ally seeks to bolster its capabilities in both areas. The country's Defense Project Promotion Committee approved last Friday plans to acquire an undisclosed number of airborne early warning and control, or AEW&C aircraft, according to the Defense Acquisition Program Administration or DAPA. The committee also approved plans to acquire more signals intelligence or SIGINT gathering aircraft. Approximately $1.3 billion has been earmarked for the acquisition of the AEW&C aircraft for entry into service by 2027 while a further $725 million has been set aside for the SIGINT platforms, which are expected to enter service in 2026. The announcement did not disclose the platforms being pursued for either program, but South Korea is almost certain to go with additional Boeing 737 AEW&C aircraft. The Republic of Korea Air Force or ROKAF is already operating four such aircraft, acquired from the United States under the Peace Eye program, since 2012. The Peace Eye 737s are derivatives of Boeing's 737 Next Generation airliners fitted with a distinctive dorsal radar housing containing a Northrop Grumman Multi-Role Electronically Scanned Array or MESA radar. The L-band radar is reportedly capable of simultaneous air and sea search, fighter control and area search, simultaneously tracking 180 targets and conducting 24 intercepts. The DAPA announcement said the acquisition of additional AEW&C aircraft will be to further minimize gaps in South Korea's air defence coverage. South Korea has in recent months publicised the intercept of Chinese and Russian military aircraft entering the Korean Air Defense Identification Zone or KADIZ. The new SIGINT aircraft will be used to replace four older platforms based on the Hawker 800 business jets. DAPA says the new aircraft will be equipped with indigenous systems and will serve alongside two Dassault Falcon 2000 SIGINT aircraft delivered to the ROKAF in 2017. The older Hawker 800 platforms were acquired in 1996 under the Paekdu project and were modified by E-Systems Incorporated for its SIGINT role. The aircraft were delivered in the early 2000s along with four other Hawker 800XPs modified for imagery reconnaissance with synthetic aperture radars and moving target indicators. https://www.defensenews.com/global/asia-pacific/2020/06/29/south-korea-to-spend-2-billion-on-aircraft-buy/

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