Bharat Forge announced that it has entered into a definitive agreement to acquire AAM India Manufacturing, a subsidiary of American Axle & Manufacturing Holdings, at an enterprise value of ₹544.53 crore.
Established in 2008, AAMIMCPL manufactures axles for light, medium and heavy-duty commercial trucks and passenger buses in India. With this transaction, the company will acquire the commercial vehicle axle business of AAMIMCPL in Pune (India) and Chennai (India) along with the Pune Engineering and Development Center. The transaction is subject to approval from the Competition Commission of India (CCI) and will close only after receiving the CCI’s approval and upon fulfilment of other customary closing conditions.
Amit Kalyani, Vice Chairman & Jt. Managing Director, Bharat Forge Limited commented, “We are delighted to welcome the AAMIMCPL team to the Bharat Forge family. We look forward to relying on their technical expertise and existing relationships with various industry players to further scale-up the business over the medium to long term. AAMIMCPL’s acquisition, when completed, will be a significant milestone in our transformational journey of adding product solutions to our repertoire on the vehicle component side. This transaction will enable BFL to get into a new business for manufacturing of products.”
“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 vehicle, pickup truck/SUV, and van applications globally and provides additional financial flexibility. 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,” said David C. Dauch, AAM Chairman and Chief Executive Officer.
