American Axle & Manufacturing Holdings Inc. in Detroit has announced plans to acquire U.K.-based automotive component supplier Dowlais Group. Terms of the proposed transaction were not disclosed.
Dowlais is a portfolio of market-leading, high-technology engineering businesses, including GKN Automotive and GKN Powder Metallurgy. It has more than 70 manufacturing facilities in 19 countries around the world.
“We are very pleased that our stockholders recognized the tremendous value creation opportunity in combining these two outstanding automotive suppliers,” says David C. Dauch, chairman and CEO of AAM, who will serve as the chairman and CEO of the combined company.
“This milestone brings us one step closer to creating a leading global driveline and metal forming supplier with size and scale to successfully navigate industry shifts and volatility.”
AAM designs, engineers, and manufactures driveline and metal forming technologies to support electric, hybrid, and internal combustion engine (ICE) vehicles. It has more than 75 facilities in 16 countries.
Following the combination, American Axle will have an expanded and balanced geographic presence across multiple automotive segments supporting ICE, hybrid, and electric powertrains.
Once the deal is finalized, American Axle is expected to generate annual revenue of approximately $12 billion on a non-adjusted combined basis.
In addition, AAM says it intends to seek a secondary listing and admission of shares of its common stock, par value $0.01 per share (collectively, AAM Shares), including the new AAM Shares to be issued in connection with the combined companies, to trading on the London Stock Exchange.
The deal is anticipated to close in the fourth quarter of this year, subject to Dowlais shareholder approval and the completion of the other remaining conditions.
More information about the proposed combination can be found on AAM’s investor website.
For more information on AAM, visit aam.com. For more information on the Dowlais Group, visit dowlais.com.
