American Axle & Manufacturing Purchases Albion Automotive
13 October 1998
American Axle & Manufacturing Purchases Scotland-based Albion Automotive
DETROIT, Oct. 12 -- American Axle & Manufacturing (AAM) has
announced its acquisition of Albion Automotive Ltd. for an undisclosed sum.
The two Tier One automotive suppliers signed a purchase agreement on Friday,
Oct. 9.
With a United Kingdom workforce of 1,150 and 1997 revenue of about
$130 million (for fiscal year ended March 31, 1998), Albion is AAM's first
acquisition.
"AAM extends a warm welcome to all members of the fine workforce of the
Albion Automotive company. We are delighted to have their talented people
become part of our global organization," said AAM Chairman, CEO & President
Richard E. Dauch. "Our organizations' complementary product lines, customer
base and mutual emphases on achieving world-class quality, cost, productivity
and timely delivery will ensure an even brighter future for all AAM and Albion
associates in the worldwide automotive market."
American Axle & Manufacturing currently produces a wide variety of
automotive systems and components including rear axles, independent front
axles, independent rear-drive systems (IRDS), propeller shafts, steering
linkages, anti-roll systems, steering & suspension components, and forged
products, primarily for SUVs and light trucks and passenger cars. Albion
Automotive produces front steerable and rear axles, driving heads,
crankshafts, chassis components and transmission parts, primarily for
medium-duty trucks and buses.
Albion was created five years ago by a management buy-out team and has
broadened its customer base beyond its core business with Leyland Trucks, DAF
Trucks and LDV (vans), acquiring new contracts with Perkins (Caterpillar),
Rover, Rolls-Royce, Volvo and Renault VI. American Axle & Manufacturing was
formed in 1994 when Dauch and two investors purchased assets and facilities
from General Motors that had previously comprised GM's driveline, propeller
shaft and forging unit. American Axle & Manufacturing has been focused on
growing its core GM business while expanding its sales to OEMs such as Ford,
Mercedes Benz, Isuzu and others. Today, AAM does business with seven OEMs and
more than a dozen other customers.
"Incorporating Albion into AAM means that, in one stroke, we acquire new
capabilities -- in particular, a proven track record in international market
development," said Mike Straney, AAM's new Vice President-Europe, who has
established a business office in Glasgow, Scotland, within the Albion
Automotive site on South Street, Scotstoun.
In meetings today with Albion employees, Straney and Albion Chief
Executive Jim Hastie explained that Albion will be maintained as an
independent operating unit of AAM with its three manufacturing facilities in
Scotstoun (Glasgow), Spurrier (Lancashire) and Farington (Lancashire). Hastie
will continue in his leadership role as Albion Chief Executive, reporting to
Straney.
"We have tremendous skill and expertise in Glasgow and Lancashire," said
Hastie. "While we have made excellent progress as an independent components
supplier, we can do much more with the strength of AAM supporting us."
American Axle & Manufacturing operates facilities in Detroit, Michigan;
Rochester Hills, Michigan; Three Rivers, Michigan; Buffalo, New York, and
Tonawanda, New York; and has a dedicated driveline operation in St.
Catharines, Ontario, Canada. In addition, AAM has an Asia/Pacific sales
office in Tokyo, Japan; a European sales office in Ulm, Germany; and a Latin
American sales office in Guanajuato, Mexico. The company is also constructing
a manufacturing facility in Guanajuato, Mexico.
AAM currently employs a workforce of approximately 8,500 and its 1997
revenues exceeded $2.2 billion.
Mike Straney, formerly AAM's Vice President-Mergers & Acquisitions, was
appointed Vice President-Europe, following the signing of the Albion purchase
agreement on Friday. He and his wife Susan are in the process of establishing
a residence in the Glasgow area.