Michigan Deal With Indiana Ties Closes
Detroit-based American Axle & Manufacturing Holdings Inc. (NYSE: AXL) has completed its previously-announced acquisition of another Michigan company with strong ties to Indiana. The multi-billion dollar deal for Metaldyne Performance Group Inc. was recently approved by stockholders of both companies.
AAM has operations in Fort Wayne and Richmond, while MPG has locations in North Vernon, Fremont and Bluffton. AAM did not state whether the acquisition would affect any Indiana operations.
The acquisition involves $1.6 billion in cash and stock with AAM also assuming $1.7 billion in net debt from MPG.
"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," said David Dauch, chief executive officer of AAM. "This transformational acquisition will allow us to maximize stakeholder value by creating a company with greater size, scale and increased business diversification that delivers efficient, powerful and innovative solutions for our customers."
Dauch will remain chairman and CEO while the company's board of directors will grow to include former MPG CEO George Thanopoulos and former MPG board members Kevin Penn and Loren Easton. As an additional result of the acquisition, MPG shares are no longer being traded on the New York Stock Exchange and MPG will soon be delisted.