US-based Dexter has entered into an agreement with AL-KO Kober to acquire AL-KO Vehicle Technology (VT).
Dexter is a designer and manufacturer of trailer axles, brakes and related components in North America.
Following completion of the transaction, which is expected at the year end, the combined company named DexKo Global is expected to create the global leader in trailer axle and chassis supply with sales of about $1bn.
The combined company will be majority owned by funds managed by Dexter's current majority owners Sterling Group.
DexKo Global will include AL-KO Kober as a significant shareholder, while Dexter and AL-KO VT will remain under their current brands.
Germany-based AL-KO VT is a designer and manufacturer of trailer axles, trailer and caravan components, chassis and motorized chassis with operations across more than 20 locations around the world, including in Europe, Australia, South Africa, China and South America.
As part of this transaction, both the firms will be able to leverage shared resources and technology, as well as the advantages of a global footprint and significantly expanded scale.
Following completion of the deal, current Dexter board member and Maxion Wheels former CEO Fred Bentley will be named president and CEO of DexKo Global.
Dexter CEO Adam Dexter said: "Dexter prides itself on providing unparalleled quality, innovation and the highest levels of customer service.
"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."
Adam Dexter will continue in his current responsibilities as president and CEO of Dexter.
