AAM Continues Pivot Towards Electrification

Rhea-AI Summary

American Axle & Manufacturing (AAM) (NYSE: AXL) has announced its acquisition of Tekfor Group for an enterprise value of €125 million, enhancing its electrification product portfolio. This strategic move is expected to diversify AAM's customer base and geographic reach and aligns with its tactical mergers and acquisitions strategy. Tekfor, based in Germany, reported sales of approximately €285 million in 2021 and specializes in automotive fasteners and metal formed components for driveline and powertrain applications. The transaction is anticipated to close in Q2 2022, pending regulatory approvals.

Positive

• Acquisition of Tekfor Group for €125 million enhances electrification product offerings.
• Expected diversification of geographic and customer sales mix.
• Tekfor generated sales of €285 million in 2021, indicating strong financial standing.

Negative

• Transaction subject to regulatory approval, which could delay closing.
• Risks associated with integration of Tekfor and realization of expected synergies.

Acquires Tekfor, a Leading Specialist in Formed and E-Mobility Components

DETROIT, April 11, 2022 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) announced today that it has entered into a definitive agreement under which AAM will acquire Tekfor Group for an enterprise value of €125 million.

"This acquisition leverages the core strengths of AAM with significant synergy potential, diversifies our geographic and customer sales mix and increases our electrification product portfolio. In addition, this purchase fits nicely with our recent tactical M&A approach," said AAM's Chairman and Chief Executive Officer, David C. Dauch.  "We are excited to expand our metal forming technologies to serve a broad range of global customers."

Based in Hausach, Germany, Tekfor Group is a leading specialist in automotive fasteners and metal formed components for driveline, powertrain, and E-mobility applications. Tekfor generated sales of approximately €285 million in 2021.

Subject to regulatory approval and other customary closing requirements, the transaction is expected to close in the second quarter of 2022.

About AAM
As a leading global Tier 1 Automotive and Mobility Supplier, AAM (NYSE: AXL) designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit with nearly 80 facilities in 17 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.

About Tekfor Group
Tekfor Group is a leading specialist for mission-critical high-performance components, modules and fasteners. Products include traditional powertrain and driveline (for both internal combustion and hybrid applications) as well as a strongly increasing number of E-mobility components. Headquartered in Hausach, Germany, Tekfor Group has eight sites and employs approximately 2,100 associates in Europe and the Americas covering the whole value chain from engineering to manufacturing.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements with respect to the transaction and the anticipated consequences and benefits of the transaction and other information relating to matters that are not historical facts.  These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements.  These risks and uncertainties include the receipt and timing of necessary regulatory approvals and the other factors detailed from time to time in the reports we file with the SEC, including those described under "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.  These forward-looking statements speak only as of the date of this communication.  We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

For more information:

Investor Contact:
David H. Lim                                                                                               
Head of Investor Relations                                                                                         
(313) 758-2006                                                                                                          
david.lim@aam.com

Media Contact:
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com

Or visit the AAM website at www.aam.com.

View original content:https://www.prnewswire.com/news-releases/aam-continues-pivot-towards-electrification-301522691.html

SOURCE American Axle & Manufacturing Holdings, Inc.

FAQ

What is the value of the AAM acquisition of Tekfor Group?

The acquisition of Tekfor Group by American Axle & Manufacturing is valued at €125 million.

How much did Tekfor Group generate in sales in 2021?

Tekfor Group generated sales of approximately €285 million in 2021.

When is the acquisition of Tekfor expected to close?

The acquisition is expected to close in the second quarter of 2022, subject to regulatory approval.

What are the main benefits of AAM's acquisition of Tekfor?

The acquisition is expected to enhance AAM's electrification portfolio, diversify its customer base, and provide synergy potential.

What are the risks associated with the AAM and Tekfor acquisition?

Risks include the need for regulatory approval and potential challenges in integrating Tekfor into AAM's operations.