KPS Capital Partners To Acquire AM General LLC

NEW YORK,July 22,2020 --KPS Capital Partners,LP ("KPS") announced today that,through a newly formed affiliate,it has signed a definitive agreement to acquire AM General LLC ("AM General" or the "Company") from an affiliate of MacAndrews & Forbes Incorporated.Financial terms of the transaction were not disclosed.

AM General designs,engineers,manufactures,supplies and supports specialized vehicles for military and commercial customers worldwide,including the iconic High Mobility Multipurpose Wheeled Vehicle colloquially known as the HUMVEE®. The Company is a global leader in ground vehicle systems and its military business is widely recognized for excellence in design,engineering,manufacturing and logistics support of tactical vehicles. AM General has built and maintained over one million vehicles in the last 100 years and over 300,000 automotive systems in more than 70 countries. Today,AM General builds more military light tactical vehicles than any other company in the world. Headquartered in South Bend,Indiana with manufacturing facilities located in Indiana and Ohio,and a state-of-the-art technical engineering center in Michigan,AM General employs a strong workforce and partners with more than 1,700 suppliers across 43 states.

Jay Bernstein,a Partner of KPS,said,"We are excited to acquire AM General,a legendary American company and world leader in the design,manufacturing and support of light tactical and specialty vehicles. We look forward to working with Chief Executive Officer Andy Hove,the Company's management team,and all of AM General's 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. KPS' demonstrated track record and history of successfully investing in specialty vehicle businesses – as well as its global platform and significant financial resources – make us exceedingly confident that AM General will continue to thrive under KPS' ownership for the benefit of its customers and all stakeholders."

Andy Hove,Chief Executive Officer of AM General,"KPS,with a decades-long track record of building world class,industry-leading companies,is the ideal partner for AM General and the military and commercial customers we serve. We look forward to working 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."

Completion of the transaction is expected in the third or fourth quarter of 2020 and is subject to customary closing conditions and approvals.

Kirkland & Ellis served as legal counsel to KPS and its affiliates.

About AM General LLC

AM General is the world leader in the design,manufacturing and support of light tactical vehicles. AM General is the designer and sole manufacturer of the HUMVEE®– the global military 4x4 leader. AM General,through its heritage companies,has built and maintained over one million vehicles in the last 100 years and over 300,000 automotive systems in more than 70 countries. AM General is headquartered in South Bend,Illinois. For more information about AM General,visitwww.amgeneral.com.

About KPS Capital Partners,LP

KPS,through its affiliated management entities,is the manager of the KPS Special Situations Funds,a family of investment funds with approximately $11.4 billion of assets under management (as of March 31,2020). For over two decades,the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries,including basic materials,branded consumer,healthcare and luxury products,automotive parts,capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better,and generates investment returns by structurally improving the strategic position,competitiveness and profitability of its portfolio companies,rather than primarily relying on financial leverage. The KPS Funds' portfolio companies currently have aggregate annual revenues of approximately $8.4 billion,operate 150 manufacturing facilities in 26 countries,and have over 23,000 employees,directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.

Logo - https://mma.prnasia.com/media2/1023167/KPS_Logo.jpg?p=medium600