May 23, 2012
Private Equity at Work unveiled its latest success story today, chronicling how private equity investment transformed Michigan-based AxleTech International from a regional manufacturer into the world’s leading supplier of specialty axles to the U.S. military. Watch the full video here.
This video highlights private equity’s contribution to the AxleTech growth story. Strengthening companies and providing strategic expertise is the cornerstone of the private equity business, and AxleTech is a great example of private equity changing the trajectory of a business to create lasting success long beyond the sale of the firm.
With an injection of capital and management expertise from The Carlyle Group, AxleTech doubled employment from 500 to nearly 1,000 employees and increased aftermarket revenue by 300 percent between 2005 and 2008. “I’m very passionate about private equity,” says former AxleTech Chairwoman and CEO Mary Petrovich in the video, “because it’s not only made a difference in my life; it’s made a difference in a thousand other employees of AxleTech’s life.”
- Tripled AxleTech’s level of capital spending on new machinery and facility expansion, resulting in a doubling of worldwide production.
- Doubled employment from 500 to nearly 1,000 between 2005 and 2008.
- Shifted the company’s strategy to focus on the fast-growing military sector, becoming the #1 supplier of planetary axles to the U.S. military.
- Expanded product offerings in the commercial aftermarket, generating a 30% increase in annual aftermarket revenue and a more than 180% increase in EBITDA from 2005 through 2008.
- Enhanced senior management by partnering with CEO Mary Petrovich to upgrade key positions and by providing an equity incentive plan for executives.
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