The debt-laden manufacturer of the military Humvee and the civilian Hummer SUVs reportedly received a cash infusion on Tuesday from New York financier Ron Perelman and handed him control of the company.
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According to Reuters, AM General LLC now will be owned by a joint venture whose managing partner will be MacAndrews AMG Holdings LLC, an affiliate of Perelman’s MacAndrews & Forbes Holdings Inc.
MacAndrews AMG contributed an undisclosed amount of cash to the joint venture and The Renco Group Inc. of New York, which had owned South Bend-based AM General outright since 1992, put up the company, the two privately held companies said, according to the report.
The companies reportedly disclosed few terms of the deal but said it allowed AM General to refinance an undisclosed amount of debt with a syndicate led by Citigroup.
Reuters said the South Bend Tribune reported on its website that Renco received about $US1 billion as part of the deal, but did not disclose the source of the information.
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By GlobalDataJim Armour, who will remain AM General’s president and chief executive, reportedly said the deal gives the company financial resources for future growth.
Reuters noted that AM General employs about 2,400 in South Bend and neighbouring Mishawaka, where two factories turn out the Humvee military vehicle and the Hummer H1 and H2 SUVs.
