Transaction Overview - American Axle & Manufacturing Holdings Inc (AAM) has agreed to acquire Dowlais Group plc for approximately $1 44 billion in a cash and share deal [1] - The transaction will combine essential product portfolios for internal combustion engine hybrid and electric vehicle manufacturing improving cost efficiency and positioning the new entity to serve a diverse customer base across multiple regions [2] - Dowlais shareholders will receive 0 0863 new AAM shares per Dowlais common stock 42 pence per share in cash and up to 2 8 pence from Dowlais' full-year 2024 final dividend [3] - Post-transaction AAM shareholders will hold around 51% of the merged company while Dowlais shareholders will own approximately 49% [3] Valuation & Premiums - The offer values each Dowlais share at 85 2 pence including the final dividend with the total value of its fully diluted share capital estimated at £1 16 billion [4] - This valuation reflects a 25% premium over Dowlais' closing price on Jan 28 2025 and a 45% premium compared to its three-month volume-weighted average share price [4] Strategic Rationale & Financial Prospects - The combination will create a leading global supplier in driveline and metal forming with a broad technology-driven powertrain-neutral product portfolio [6] - The deal is expected to generate approximately $300 million in synergies with strong earnings accretion high margins robust cash flow and a solid balance sheet [6] - In 2023 the combined company generated approximately $12 billion in revenues with AAM expecting significant earnings boost in the first full year post-transaction [7] - The cash portion of the deal will be financed through a combination of cash on hand and debt maintaining a neutral net leverage position at closing before synergies [7] Governance & Transaction Details - The boards of both AAM and Dowlais have unanimously approved the transaction with the new company headquartered in Detroit MI and David C Dauch continuing as Chairman and CEO [8] - Two independent Dowlais directors and four Dowlais executives will join the board and leadership roles within AAM respectively [8] - The acquisition will be carried out through a Court-sanctioned scheme of arrangement under the UK Companies Act 2006 with the transaction expected to close by the end of 2025 subject to approvals [9] - AAM will continue trading on the NYSE under the "AXL" ticker while Dowlais' shares will be delisted from the London Stock Exchange post-transaction [10] Industry Context - AXL currently carries a Zacks Rank 3 (Hold) while other auto stocks like Geely Automobile Holdings Limited (GELYY) Yamaha Motor Co Ltd (YMHAY) and Allison Transmission Holdings Inc (ALSN) are ranked higher [11] - GELYY is expected to see significant year-over-year growth in fiscal 2025 sales and earnings with EPS estimates improving by 15 cents and 38 cents for fiscal 2025 and 2026 respectively [12] - YMHAY and ALSN also show positive growth trends with improved EPS estimates for 2025 [12][13]

Creating a Leading Global Driveline and Metal Forming Supplier In this presentation, American Axle & Manufacturing Holdings, Inc. ("AAM") makes statements concerning its and Dowlais' expectations, beliefs, plans, objectives, goals, strategies, and future events or performance, including, but not limited to, certain statements related to the ability of AAM and Dowlais to consummate AAM's business combination with Dowlais (the "Business Combination") in a timely manner or at all; future capital expenditures, ...

Core Insights - Monteverde & Associates PC is investigating American Axle & Manufacturing Holdings, Inc. regarding its proposed merger with Dowlais Group plc, which includes specific terms for Dowlais shareholders [1] Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm by ISS Securities Class Action Services Report and has successfully recovered millions for shareholders [1] - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [2] Merger Details - Under the merger agreement, Dowlais shareholders will receive 0.0863 shares of new AAM common stock, 42 pence in cash per share, and up to 2.8 pence of Dowlais FY24 final dividend prior to closing [1]

Core Viewpoint - American Axle & Manufacturing has agreed to acquire Dowlais Group for approximately $1.44 billion, marking a significant transaction in the automotive parts industry and indicating a trend of U.K. companies leaving the London stock market [1][4]. Group 1: Transaction Details - The acquisition involves a cash-and-shares deal, with American Axle offering a 25% premium on Dowlais' closing price and a 45% premium on its average share price over the past three months [1][2]. - Post-transaction, American Axle will own 51% of the combined entity, while Dowlais' shareholders will retain 49% [2]. Group 2: Financial Implications - The combined entity is projected to generate annual revenues of approximately $12 billion and achieve $300 million in savings by the end of the third year following the transaction [2]. - The deal is expected to enhance cash flow and strengthen the balance sheet of the new entity [2]. Group 3: Industry Context - The merger aims to expand geographic presence and adapt to evolving propulsion trends in the automotive industry, which is transitioning towards electric vehicles [3]. - Both companies produce automotive parts for internal combustion engines, hybrids, and electric powertrains, amidst increasing competition from Chinese manufacturers [3]. Group 4: Historical Context - Dowlais has been listed in London since April 2023, following its spin-off from Melrose Industries, and has seen a 38.5% decline in stock value since its debut [4][5]. - The company has a rich history dating back to the Dowlais Ironworks founded in 1759 and currently employs around 30,000 people across more than 70 manufacturing facilities in 19 countries [5].

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About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Company Overview - American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules, and components for the light vehicle market, operating around 80 facilities in 18 countries [10] - Major customers include General Motors, Stellantis, and Ford [10] Investment Ratings - AXL is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A [11] - The stock has a Momentum Style Score of B, with shares increasing by 9.3% over the past four weeks [11] Earnings Estimates - Three analysts have revised their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.01 to $0.35 per share [11] - AXL has an impressive average earnings surprise of 933.4% [11] Investment Potential - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AXL is recommended for investors' short lists [12]

American Axle & Manufacturing Holdings (AXL) reported third-quarter 2024 adjusted earnings of 20 cents per share, which surpassed the Zacks Consensus Estimate of a cent. The company had incurred a loss of 11 cents per share in the year-ago quarter.The company generated quarterly revenues of $1.50 billion, missing the Zacks Consensus Estimate of $1.51 billion. Revenues declined 3% on a year-over-year basis.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Segmental PerformanceIn the re ...

Have you looked into how American Axle & Manufacturing (AXL) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this maker of auto parts, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory ...