AAM has recently announced the sale of its commercial vehicle axle business and related assets in India to Bharat Forge Limited for a purchase price of $65 million. The business being sold generated approximately $156 million of sales in the last twelve months ending June 30, 2024. The transaction includes AAM’s manufacturing facilities in Pune and Chennai, which are focused on light, medium, and heavy commercial vehicle axles, as well as AAM’s Pune engineering and development center. Excluded from the transaction are the AAM components manufacturing facility in Chakan and the Pune business office, which provides engineering, IT, and procurement shared services for AAM’s operations around the world.
AAM's decision to sell the commercial vehicle axle business in India is aimed at strengthening its focus on ICE, hybrid, and full electric passenger car, pickup truck/SUV, and van applications globally, and providing additional financial flexibility.
The transaction is expected to close in the fourth quarter of 2024 subject to customary closing conditions, including the receipt of regulatory approvals. Lincoln International served as the exclusive sell-side financial advisor to AAM on this transaction.
Bharat Forge Limited, the purchaser, is a technology-driven global leader providing high-performance, innovative safety-critical components and solutions for several sectors, including automotive, power, oil and gas, construction & mining, rail, marine, defense, and aerospace. BFL has a presence across 18 manufacturing locations in five countries with the largest repository of metallurgical knowledge.
This transaction is expected to be a significant milestone in BFL's transformational journey of adding product solutions to its repertoire on the vehicle component side. Today the company's shares have moved 0.7% to a price of $6.22. If you want to know more, read the company's complete 8-K report here.
