Bharat Forge enters into a Definitive Agreement to acquire AAM India Manufacturing Corporation Pvt Ltd

Bharat Forge Limited (BSE: 500493, NSE: BHARATFORG, today announced that it has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Private Limited ("AAMIMCPL"), a subsidiary of American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL), at an enterprise value of Rs. 5,445.30 million, subject to closing adjustments.

Established in 2008, AAMIMCPL is a leading manufacturer of axles for light, medium and heavy-duty commercial trucks and passenger buses in India. With this transaction, the company will acquire commercial vehicles 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.

Mr. 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," said David C. Dauch, AAM Chairman and Chief Executive Officer. "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."

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals.

Shares of Bharat Forge Limited was last trading in BSE at Rs. 1469.35 as compared to the previous close of Rs. 1475.05. The total number of shares traded during the day was 16232 in over 1740 trades.

The stock hit an intraday high of Rs. 1479.40 and intraday low of 1443.35. The net turnover during the day was Rs. 23765813.00.

Source : Equity Bulls

Keywords

BharatForge INE465A01025 Acquisition AAMIndiaManufacturingCorporation