Auto components major Bharat Forge Ltd has agreed to buy AAM India Manufacturing Corporation Pvt. Ltd, the local unit of US-based automobile parts maker American Axle & Manufacturing Holdings Inc.
The Pune-based company will acquire AAM India at an enterprise value of Rs 544.53 crore ($65 million), it said in a statement Thursday.
The transaction will include the acquisition of the commercial vehicle axle business of AAM India in Pune and Chennai as well as the Pune engineering and development centre.
American Axles' components manufacturing facility in Chakan and the Pune business office, which provides engineering, IT and procurement shared services for the company's operations around the world, will be excluded from the transaction, the Detroit-headquartered company said.
The deal will close only after receiving the Competition Commission of India's (CCI) approval and upon fulfilment of other customary closing conditions.
“The strategic decision to sell our commercial vehicle axle business in India enables us to strengthen our focus on ICE (internal combusion engine), hybrid and full electric passenger vehicle, pickup truck/SUV, and van applications globally and provides additional financial flexibility,” said David Dauch, Chairman and Chief Executive Officer at American Axle.
The unit, AAM India, was established in 2008 and manufactures axles for light, medium and heavy-duty commercial trucks and passenger buses in India.
For the financial year 2023-24, the unit generated turnover of Rs 1,585.86 crore, of which Rs 1,383.79 crore was generated by the Pune-based development centre, as per Bharat Forge’s stock exchange filing.
