Bharat Forge, the flagship company of the Kalyani Group, has entered into a definitive agreement to acquire AAM India Manufacturing Corp, the Indian subsidiary of American Axle & Manufacturing Holdings Inc, for ₹544.53 crore. This acquisition aims to strengthen Bharat Forge’s customer base and expand its manufacturing footprint in India.
The transaction is expected to close in the fourth quarter of 2024 subject to customary closing conditions, including the receipt of regulatory approvals.
BFL is the Pune-based flagship company of Kalyani Group, a global provider of high-performance and safety critical components and solutions to multiple sectors including automotive, rail transportation, defense, construction & mining, aerospace, marine and energy. The company has manufacturing facilities in India, Europe and North America.
According to a news release about the sale, the scope of the transaction includes AAM’s manufacturing facilities in Pune and Chennai, which are focused on light, medium and heavy commercial vehicle axles. It also includes 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, the company said.
“The acquisition of AAMIMCPL will mark a significant milestone in our transformational journey, enhancing our range of product solutions in the vehicle component sector,” said Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge.
“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 car, 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.”
