American Axle & Manufacturing Announces Acquisition of Dowlais Group plc in a Strategic Business Combination

American Axle & Manufacturing Holdings, Inc. has announced a significant business development on January 29, 2025, revealing plans to acquire the Dowlais Group plc in a recommended offer. This acquisition, disclosed in accordance with Rule 2.7 of the United Kingdom City Code on Takeovers and Mergers, involves a Co-operation Agreement between American Axle & Manufacturing Holdings, Inc. and Dowlais.

The terms unveiled indicate that for each Dowlais share, shareholders will receive 42 pence per share in cash along with 0.0863 new shares of common stock of American Axle & Manufacturing. Additionally, Dowlais shareholders are entitled to a final cash dividend of up to 2.8 pence per share. This proposition values Dowlais at approximately £1.16 billion. Following the completion of this transaction, American Axle & Manufacturing Holdings and Dowlais shareholders are anticipated to own 51% and 49%, respectively, of the combined entity.

Both companies’ boards have unanimously approved this transaction, with David C. Dauch set to become the CEO of the combined organization post-closure. It is projected that two Dowlais directors will join the expanded board of directors of the combined entity.

The closing of this agreement is subject to various conditions, including approval from Dowlais shareholders, regulatory approval, and certain financial adjustments. The expected completion date is by the end of 2025.

The accompanying Backstop Credit Agreement and Bridge Facilities are structured to support the financial aspects of the acquisition, ensuring adequate capital to finance the transaction costs, synergies, and debt refinancing expenses.

Moreover, the preliminary unaudited financial results for American Axle & Manufacturing Holdings, Inc. for the fiscal year ended December 31, 2024, were also disclosed. The estimated highlights include a sales range of $6.1 – $6.15 billion, net income in the range of $30 – $35 million, and adjusted EBITDA expected in the range of $740 – $750 million.

The comprehensive coverage of this potential acquisition outlines a strategic move towards a more diversified and balanced business model for American Axle & Manufacturing Holdings, Inc. while signaling substantive growth and value creation opportunities for all stakeholders involved.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read American Axle & Manufacturing’s 8K filing here.

About American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles.