American Axle reinforcement American Axle & Manufacturing Holdings Inc. is acquiring Tekfor Group in a deal worth more than $135 million to broaden its electrification portfolio.
American Axle announced Monday its acquisition of the Hausach, Germany-based company, which employs 2,100 people across eight sites in Europe and America, including one in Ohio.
The deal is scheduled to finalise in the second quarter, pending regulatory approvals.
“This acquisition complements AAM’s fundamental capabilities, diversifies our geographic and client base, and expands our electrification product line. Additionally, this acquisition fits well with our recent tactical M&A strategy “According to a news release, AAM Chairman and CEO David Dauch. “We are excited to enhance our metal forming capabilities in order to better service a diverse worldwide customer base.”
The deal follows American Axle’s February $15 million investment in Silicon Valley venture capital firm Autotech Ventures and its push for electrified drive units, wheel end motors, and e-beam axles.
Despite its investment in electrification, American Axle is maintaining a presence in the internal combustion engine market, where it is benefiting from industry consolidation.
The company suffered a fourth-quarter loss of $46.3 million as a result of volatile production, workforce shortages, and supply chain issues. Nonetheless, Dauch stated in February that it will profit from competitors quitting the engine and driveline market as the industry transitions to electric vehicles.
American Axle shares increased over 5% to $7.07 per share on Monday morning following the acquisition announcement.
American Axle is ranked 47th on Automotive News’ list of the world’s top 100 suppliers, with global components sales to automakers expected to reach $4.71 billion in 2020. with the acquisition of Tekfor, the company’s electrification plan