NEW YORK -- Billionaire Ronald Perelman's MacAndrews & Forbes Holdings Inc. will form a venture with Renco Group Inc., which owns Hummer maker AM General LLC.
The venture will give MacAndrews managing control of AM General, the companies said Tuesday.
AM General, which designs and builds the Humvee military vehicle and its commercial siblings, the Hummer H1 and H2, will be operated by Perelman's MacAndrews subject to certain rights still held by Renco, the companies said.
Renco is run by deal maker Ira Rennert, who took over AM General of South Bend, Ind., in 1992 for $133 million. The companies did not provide a value for the deal, which was widely reported to be worth more than $930 million.
AM General's management team, led by President and CEO James Armour, will continue to run the company after the transaction is completed, the companies said.
AM General said it refinanced its outstanding debt with a new senior credit facility arranged by Citigroup.
The Hummer line of vehicles are sold through a 1999 marketing and distribution agreement between AM General and General Motors.