American Axle & Manufacturing announces acquisition of Metaldyne Performance Group

November 4, 2016

American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE:AXL) and Metaldyne Performance Group Inc. (MPG) (NYSE:MPG) have announced that the companies have entered into a definitive merger agreement under which AAM will acquire MPG for approximately $1.6 billion in cash and stock, plus the assumption of $1.7 billion in net debt.  The transaction has been unanimously approved by the boards of directors of both companies and is anticipated to close in the first half of 2017 subject to shareholder and regulatory approval and other customary closing conditions.

“AAM’s transformational acquisition of MPG brings together two complementary Tier 1 organisations to create a company with greater scale and increased diversity across products, customers and end markets,” stated David C. Dauch, AAM’s Chairman and Chief Executive Officer.

“MPG’s expertise in complex, highly-engineered powertrain components and its global footprint will be tremendous assets to AAM. We are excited about the powerful industrial logic in this combination that will allow us to create additional value for our customers and other key stakeholders.  Together, we are forming a company with increased earnings potential and enhanced cash flow generation that will allow us to rapidly reduce leverage while fuelling growth and delivering value to our shareholders,” added Dauch.

AAM is a world leader in the manufacturing, engineering, design and validation of driveline and drivetrain systems and related components and modules, chassis systems, electric drive systems and metal-formed products.  In addition to locations in the United States (Michigan, Ohio, and Indiana), AAM also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, Scotland, South Korea, Sweden and Thailand. AAM has approximately 13,000 employees globally.

MPG is a leading provider of highly-engineered components for use in powertrain and suspension applications for the global light, commercial and industrial vehicle markets. The company has a global footprint spanning more than 60 locations in 13 countries across North America, South America, Europe and Asia with approximately 12,000 employees.

Under the terms of the agreement, each share of MPG’s common stock will be converted into the right to receive $13.50 per share in cash and 0.5 share of AAM common stock. Upon closing of the transaction, AAM’s shareholders will own approximately 70% of the combined company and MPG’s shareholders will own approximately 30%.

“This compelling transaction offers MPG shareholders an immediate premium and significant participation in the growth potential of the combined organization and its talented associates. MPG and AAM share a similar culture and value system, laser focused on quality, operational excellence and technology leadership, which creates a natural fit and clear path to value creation for stakeholders of both companies,” stated George Thanopoulos, MPG’s Chief Executive Officer.

www.aam.com

www.mpgdriven.com

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Burgess-Norton and Amsted Automotive: How a legacy automotive supplier is growing with, not despite, electrification
  • Meeting sustainability demands in PM: High-temperature sintering of nickel- and copper-free powder mixtures for low alloyed PM parts
  • World PM2022: An overview of the status and trends in the global PM industry
  • A novel approach for the production of metal powders with tailored chemical compositions: Amazemet’s rePowder
  • Productivity, flexibility, reliability: SACMI’s new press technologies for the changing PM industry
  • Understanding the thermal properties of metal powders: Characterisation of powders using the Hot Disk technique
  • World PM2022: Views on the potential of Field Assisted Sintering for advanced materials

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

From the industry…

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
Download PDF
Share via
Copy link