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AAM Announces Combination with Dowlais for $1.44 Billion in Cash and Stock

1. American Axle to acquire Dowlais for $1.44 billion, enhancing automotive presence. 2. Expected $300 million cost synergies boost cash flow and shareholder value.

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FAQ

Why Bullish?

The acquisition strengthens AXL's market position and could drive revenue growth, similar to past successful partnerships.

How important is it?

This acquisition significantly impacts AXL's strategic direction and financial outlook, enhancing its operational capabilities.

Why Long Term?

The strategic acquisition is likely to create sustained growth opportunities over the coming years.

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DWL
Creates leading global driveline and metal forming supplier with comprehensive product portfolio and diversified customer base Combination will have expanded and balanced geographic presence across multiple automotive segments supporting ICE, Hybrid and Electric powertrains; expected to generate annual revenues of approximately $12 billion on a non-adjusted combined basis Expected to deliver approximately $300 million annual run rate cost synergies and high earnings accretion in the first full year following the close of the transaction Strengthened cash flow profile and balance sheet to accelerate deleveraging and shareholder value creation DETROIT , Jan. 29, 2025 /PRNewswire/ -- American Axle & Manufacturing (AAM), (NYSE: AXL) is pleased to announce that it has reached an agreement with the board of the Dowlais Group plc (Dowlais), (LON: DWL) on the terms of a recommended cash and share offer to be made by AAM for the entire issued and to be issued ordinary share capital of Dowlais (the "Combination") for approximately $1.44 billion in cash and AAM shares. With a combined portfolio of products essential in the manufacturing of internal combustion engine (ICE), hybrid and electric vehicles (EV), coupled with an enhanced cost structure, the combined company will be well-positioned to serve a diverse customer base spanning multiple geographies and support changing propulsion trends as the industry continues to evolve.

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