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Customer LoginsAmerican Axle increases powertrain portfolio with Metaldyne acquisition
The acquisition will help the company reduce its dependence on GM and strengthen its business in Europe and Asia
In a major diversification move, Detroit-based auto part supplier American Axle Manufacturing (AAM) has announced it is acquiring engine part maker Metaldyne Performance Group (MPG) for USD1.6 billion. The deal also includes the assumption of USD1.7 billion in Metaldyne debt, making the effective acquisition price to USD3.3 billion.
The combined entity is expected to have a revenue of USD7 billion and EBITDA of USD1.2 billion, making it one of the biggest auto component makers in North America, along with BorgWarner and Dana. AAM has also highlighted the cash flow of USD400 million as one of the positives to come from the acquisition.
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