Dexter Axle and AL-KO VT to Close Strategic Combination
ELKHART, INDIANA (October 26, 2015)
Dexter, the leading designer and manufacturer of trailer axles, brakes and related components in North America, has agreed to acquire AL-KO Vehicle Technology ("VT") from AL-KO Kober SE. The combination of the two companies, to be named DexKo Global Inc., will create the global leader in trailer axle and chassis supply with sales approaching nearly $1 billion. The transaction is expected to close at year end.
DexKo Global Inc. will be majority owned by funds managed by The Sterling Group, Dexter’s current majority owners. The combined company will include AL-KO Kober SE as a significant shareholder. Dexter and AL-KO VT will remain under their current brands as market leaders in their respective geographies. Dexter’s headquarters will remain in Elkhart, Indiana.
Headquartered in Kötz, Germany, AL-KO VT is the leading European designer and manufacturer of trailer axles, trailer and caravan components, chassis and motorized chassis. The company operates from 20+ locations around the world, including in Europe, Australia, South Africa, China and South America.
Dexter is the clear market leader in quality, innovation and service in North America. The addition of its European counterpart will result in an even stronger organization. The two companies will be able to leverage shared resources and technology, as well as the advantages of a global footprint and significantly expanded scale.
At closing, Fred Bentley, current Dexter board member and former CEO of Maxion Wheels, will be named President and CEO of DexKo Global Inc. Adam Dexter will continue in his current responsibilities as President and CEO of the US-based Dexter. Kevin Garland, a Partner at The Sterling Group, will continue as Chairman of the Board. Stefan Kober, CEO of AL-KO Kober SE, will be named Vice Chairman of the Board.
"I am excited by the opportunity to lead and bring together two world class organizations. We will focus on continuing to lead with great technology and customer service and to expand our strong market leadership positions. It is truly an exciting time for this new organization and we will use our collective strengths for the benefit of all of our customers, employees, suppliers and stakeholders," said Fred Bentley.
"Dexter prides itself on providing unparalleled quality, innovation and the highest levels of customer service," said Adam Dexter, CEO of Dexter. "The addition of AL-KO VT and formation of DexKo Global Inc. will enhance Dexter’s resources and ability to introduce new technologies and products to better serve our loyal customer base."
