American Axle to Sell Commercial Vehicle Axle Business in India for $65M
American Axle & Manufacturing Holdings Inc. in Detroit announced today it intends to sell its commercial vehicle axle business and related assets in India to Bharat Forge Ltd. (BFL) for $65 million.
AAM India Manufacturing Corp. Pvt. Ltd. (AAMIMCPL) generated approximately $156 million of sales in the last 12 months ending June 30.
The scope of the transaction includes AAMâ€TMs manufacturing facilities in Pune and Chennai, which are focused on light, medium, and heavy commercial vehicle axles.
It also includes AAMâ€TMs Pune Engineering and Development Center. Excluded from the transaction are the AAM components manufacturing facility in Chakan and the Pune Business Office, which provides engineering, IT, and procurement shared services for AAMâ€TMs operations around the world.
"The strategic decision to sell our commercial vehicle axle business in India enables us to strengthen our focus on ICE, hybrid, and full-electric passenger car, pickup truck, SUV, and van applications globally and provides additional financial flexibility," says David C. Dauch, chairman and CEO of AAM. "We are committed to collaborating with Bharat Forge to execute this agreement efficiently and support the continuity of supply from these facilities to customers during the ownership transition."
BFL is the Pune-based flagship company of Kalyani Group, a global provider of high-performance and safety critical components and solutions to multiple sectors including automotive, rail transportation, defense, construction and mining, aerospace, marine, and energy. The company has manufacturing facilities in India, Europe, and North America.
"We are delighted to welcome the AAMIMCPL team to the Bharat Forge family," says Amit Kalyani, vice chairman and managing director of BFL. "We look forward to relying on their technical expertise and excellent relationship with key industry players to further scale-up the business over the medium to long term.
"AAMIMCPLâ€TMs acquisition, when completed, will be a significant milestone in our transformational journey of adding product solutions to our repertoire on the component side. This transaction will enable BFL to get into a new business for manufacturing of products."
The transaction is expected to close in the fourth quarter of 2024 subject to customary closing conditions, including the receipt of regulatory approvals.
Lincoln International was the exclusive sell side financial advisor to AAM on this transaction.
