Bharat Forge Limited (BFL) has reached a definitive agreement to acquire the commercial vehicle axle business of American Axle & Manufacturing Holdings, Inc. (AAM) in India for $65 million. The sale includes AAM India Manufacturing Corporation Pvt. Ltd. (AAMIMCPL) and is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in the fourth quarter of 2024.
The business being sold generated approximately $156 million in sales over the 12 months ending June 30, 2024. The deal includes AAM’s manufacturing facilities in Pune and Chennai, which produce light, medium, and heavy commercial vehicle axles. AAM’s Pune Engineering and Development Center is also part of the transaction. However, the components manufacturing facility in Chakan and the Pune Business Office, which provides shared services, are excluded from the sale.
David C. Dauch, Chairman and CEO of AAM, stated that the sale will allow AAM to concentrate on its global business in internal combustion engine (ICE), hybrid, and electric vehicle components, and provide additional financial flexibility.
Amit Kalyani, Vice Chairman & Joint Managing Director of Bharat Forge, highlighted that the acquisition would help BFL expand its product offerings and rely on AAMIMCPL’s expertise to scale up its operations.
The transaction was advised by Lincoln International as the exclusive financial advisor for AAM.