American Axle & Manufacturing Announces Asset Purchase Agreement with FormTech Industries


PHOTO

DETROIT, December 5, 2008: American Axle & Manufacturing (AAM), which is traded as AXL on the NYSE, today announced that it has executed an asset purchase agreement with FormTech Industries LLC ("FormTech").

As part of this agreement, AAM exchanged its hub and spindle forging business for FormTech's differential gear, hypoid pinion and ring gear forging businesses. In order to compensate for the difference in value between the assets and businesses exchanged by the parties, AAM made a cash payment to FormTech. The parties also exchanged certain direct and indirect inventories, fixed assets and tooling related to the exchanged businesses.

Other key aspects of the agreement include:

The sale of AAM's Tonawanda Forge Facility to a third party. FormTech will continue to operate in the Tonawanda facility.

AAM's acquisition of FormTech's 50,000 square-foot manufacturing facility, in Ft. Wayne, Indiana. AccuGear, Inc., a newly formed AAM subsidiary, will produce net shaped differential gears for a variety of customers.

"Through this asset purchase agreement, AAM has strategically acquired new forging process technology. This strengthens AAM's competitive position in the North American automotive forging market and enhances our ability to expand and diversify AAM's market penetration into transaxle components for passenger cars and crossover vehicles, as well as transfer case and all-wheel-drive components," says AAM Co-Founder, Chairman & CEO Richard E. Dauch.

Home | Buyers Guides By Make | New Car Buyers Guide | Used Car Super Search | Total New Car Costs | New Car and Truck Reviews
Automotive News | TACH-TV | Media Library | Discount Auto Parts

Copyright © 1996-2014 The Auto Channel. Contact Information, Credits, and Terms of Use. These following titles and media identification are Trademarks owned by The Auto Channel, LLC and have been in continuous use since 1987 : The Auto Channel, Auto Channel and TACH all have been in continuous use world wide since 1987, in Print, TV, Radio, Home Video, Newsletters, On-line, and other interactive media; all rights are reserved and infringement will be acted upon with force.

Privacy Statement | Size Does Matter | Media Kit | XML SITE MAP | Affiliates

Send your questions, comments, and suggestions to Editor-in-Chief@theautochannel.com.

Submit Company releases or Product News stories to submit@theautochannel.com.
Place copy in body of email, NO attachments please.

To report errors and other problems with this page, please use this form.

Link to this page: http://www.theautochannel.com/