International. The company has announced the signing of a definitive agreement to sell its commercial vehicle axle business in India to Bharat Forge Limited (BFL) for a purchase price of $65 million, subject to customary adjustments at closing.
This business, known as AAM India Manufacturing Corporation Pvt., Ltd. generated approximately $156 million in sales over the trailing 12 months ended June 30, 2024.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions, including regulatory approvals.
BFL, headquartered in Pune, is the flagship company of the Kalyani Group, a global supplier of critical components to various sectors, including automotive, rail, defense and energy.
The agreement includes AAM's plants in Pune and Chennai, focused on axles for light, medium and heavy-duty commercial vehicles, as well as the Engineering and Development Centre in Pune. However, the facilities in Chakan and the Commercial Office in Pune, which provides shared engineering, IT and procurement services, are excluded.
David C. Dauch, president and CEO of AAM, said that this strategic decision will allow the company to focus on passenger vehicles, SUVs and electric vans, in addition to offering greater financial flexibility. AAM is committed to collaborating with Bharat Forge to ensure an efficient transition and maintain continuity of supply to customers during this process.
