This post is from Apr 10, 2017 Robert Brooks' news release in FOUNDRY Magazine's web site, "American Axle Completes $3.3B Takeover of MPG, including Grede Green Sand Foundry."
American Axle & Manufacturing Holdings Inc. has completed its takeover of Metaldyne Performance Group Inc. (MPG), a deal announced last November and now estimated to be worth $3.3 billion in cash and debt acquisition.
AAM reportedly paid $1.6 billion in cash and stock and acquired $1.7 billion in net debt from MPG’s owner, private-equity group American Securities LLC. The directors and shareholders of both firms reportedly gave unanimous approval to the transaction.
While the AAM organization consists mainly of forging and machining operations, the MPG portfolio includes the Grede Foundry iron foundries and finish machining plants, in the U.S. and Mexico.
Image and video from Grede Foundry's "Wisconsin Business Friend of the Environmental Award" presentation.
“Today is a historic day where we combine the strengths of both AAM and MPG into a premier, global Tier 1 automotive supplier with broader capabilities across multiple product lines,” stated AAM chairman and CEO David C. Dauch.
Dauch further predicted the combination would create “a company with greater size, scale and increased business diversification that delivers efficient, powerful, and innovative solutions for our customers.”
AAM and MPG have a number of common manufacturing activities, in particular closed-die forging operations producing driveline and drivetrain parts and systems for light trucks, SUVs, passenger cars, crossover vehicles, and commercial vehicles.
MPG also a significant presence in North America casting and machining ductile and gray iron parts for automotive and light truck programs. Both companies have precision machining, finishing, and assembly operations.
Metaldyne Performance Group was formed in 2014 as a holding company for two forging organizations (Metaldyne, HHI) and a large foundry group (Grede Foundries). All three constituent companies had been formed by consolidating a wide portfolio of operations (Blackhawk Foundry, Citation, Cloyes, NovoCast, Jernberg.) over the preceding decade.
The new AAM now has the former MPG as a wholly owned subsidiary, and the group claims more than 90 plants and other centers in 17 countries, with over 25,000 employees.
David C. Dauch will remain as chairman and CEO, with Alberto L. Satine as president of the Driveline business unit; Norman Willemse as president of the Metal Forming business unit; and Todd Heavin president of the Casting business unit. Greg Deveson will join AAM this month as president of the Powertrain business unit.