Bharat Forge to acquire AAM India at enterprise value of Rs 544 cr

New Delhi: Bharat Forge on Thursday said it has inked a pact to acquire AAM India Manufacturing Corporation at an enterprise value of Rs 544.5 crore.

The company has entered into a definitive agreement to acquire the firm, a subsidiary of American Axle & Manufacturing Holdings Inc (AAM), the diversified firm said in a statement.

Established in 2008, AAM India Manufacturing Corporation Pvt Ltd (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 the commercial vehicles axle business of AAMIMCPL in Pune and Chennai along with the Pune Engineering and Development Center, Bharat Forge said.

The transaction is subject to approval from the CCI and will close only after receiving its approval and upon fulfilment of other customary closing conditions, it added.

"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," Bharat Forge Vice Chairman & Joint Managing Director Amit Kalyani said.

This transaction will enable BFL to get into a new business for manufacturing of products, he added.

AAM Chairman and CEO David C Dauch said the strategic decision to sell commercial vehicle axle business in India enables the firm to strengthen its focus on ICE (internal combustion engine), 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," he added.

Shares of Bharat Forge ended 0.39 per cent lower at Rs 1,469.35 apiece on the BSE.