Bharat Forge to Acquire AAM India Manufacturing Corp

Bharat Forge is set to acquire AAM India Manufacturing for Rs. 5,445.30 million, expanding its commercial vehicle axle business.

Pune- Bharat Forge Limited., of the Kalyani Group., has announced that it has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Private Limited (AAMIMCPL), a Tier 1 Automotive and Mobility Supplier, a subsidiary of American Axle & Manufacturing Holdings, Inc. (AAM), at an enterprise value of Rs. 5,445.30 million, subject to closing adjustments. 

Established in 2008, AAMIMCPL is a prominent manufacturer of axles for light, medium, and heavy-duty commercial trucks and passenger buses in India. As part of this transaction, the company will acquire AAMIMCPL’s commercial vehicle axle business in Pune and Chennai, along with the Pune Engineering and Development Center. The deal is subject to approval by the Competition Commission of India (CCI) and will be finalized after receiving CCI clearance and fulfilling other customary closing conditions.

Mr. Amit Kalyani, Vice Chairman & Jt. Managing Director, Bharat Forge , said, “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.”

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