DETROIT, Sept. 18, 2019 /PRNewswire/ -- American Axle
& Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) announced
today that it has entered into a definitive agreement to sell its
U.S. iron casting operations ("Grede") to funds managed by Gamut
Capital Management ("Gamut") for an aggregate purchase price of
$245 million, subject to certain
customary adjustments.
Across 10 manufacturing facilities, Grede develops,
manufactures, assembles and supplies ductile, gray, and specialty
iron castings and machined components for automotive, commercial
vehicle and industrial markets. For the full year 2018, Grede
generated $781 million in sales
($741 million excluding intercompany
transactions).
"The sale of Grede will enable us to streamline our business,
accelerate our debt reduction initiatives and enhance our margin
profile," said AAM's Chairman and Chief Executive Officer,
David C. Dauch. "We will
continue to optimize and invest in our highly-engineered product
portfolio, focus on profitable growth opportunities including
electrification, and further strengthen AAM's value proposition to
all key stakeholders."
Jordan Zaken, Founding Partner of
Gamut, said, "Grede is a market-leading supplier of
high-performance, mission-critical castings with national scale, a
blue-chip customer base and significant opportunities for growth.
We are excited to partner with Grede and its dedicated employee
base in its next chapter as an independent company focused on
operational excellence and best-in-class delivery for its
customers."
AAM will retain its El Carmen,
Mexico iron casting operations. The El Carmen
Manufacturing Facility will continue to provide significant
vertical integration benefits to AAM, while also continuing to
serve external customers in Mexico
and other global markets.
The $245 million sale price will
consist of $185 million in cash and a
$60 million deferred payment
obligation, subject to certain customary adjustments. Net
cash proceeds will primarily be used to repay outstanding
indebtedness. The transaction is expected to close in the
fourth quarter of 2019, subject to customary closing conditions,
including the receipt of regulatory approvals.
For more information, visit the investor page at www.aam.com for
a supplemental investor presentation.
Forward-Looking Statements
This report 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.
About AAM
AAM (NYSE:AXL) delivers POWER that moves the
world. As a leading global tier 1 automotive supplier, AAM designs,
engineers and manufactures driveline, metal forming and casting
technologies that are making the next generation of vehicles
smarter, lighter, safer and more efficient. Headquartered in
Detroit, AAM has over 25,000
associates operating at nearly 90 facilities in 17 countries to
support our customers on global and regional platforms with a focus
on quality, operational excellence and technology leadership.
To learn more, visit aam.com.
About Gamut Capital Management
Gamut Capital
Management is a New York-based
private investment firm managing $1.2
billion in assets focused on the middle market. Gamut was
founded in 2015 by Stan Parker and
Jordan Zaken who have over 35 years
of combined private equity investing experience. Gamut's senior
deal professionals have executed investments in over 30 companies
in North America and Europe. To learn more, please visit
www.gamutcapital.com.
For more information:
Investor
Contact:
|
|
Jason P.
Parsons
|
|
Director, Investor
Relations
|
|
(313)
758-2404
|
|
jason.parsons@aam.com
|
|
|
|
Media
Contact:
|
|
For
AAM:
|
For Gamut:
|
Christopher M.
Son
|
Gasthalter &
Co.
|
Vice President,
Marketing & Communications
|
Nathaniel
Garnick
|
(313)
758-4814
|
(212)
257-4170
|
chris.son@aam.com
|
NG@gasthalter.com
|
Or visit the AAM website at www.aam.com.
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SOURCE American Axle & Manufacturing Holdings, Inc.