Private Equity Transforms Regional Manufacturer into Global Leader

AxleTech International is a manufacturer that grew to become the world’s leading supplier of specialty axles to the U.S. military with the help of private equity investment. 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. 

Investment Highlights:

• 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.