AAM To Acquire MPG In Cash And Stock Deal - Quick Facts

(RTTNews) - American Axle & Manufacturing Holdings, Inc. (AXL) and Metaldyne Performance Group Inc. (MPG) announced they have entered into a definitive merger agreement under which AAM will acquire MPG for approximately $1.6 billion in cash and stock, plus the assumption of $1.7 billion in net debt. Each share of MPG's common stock will be converted into the right to receive $13.50 per share in cash and 0.5 share of AAM common stock. Upon closing of the transaction, AAM's shareholders will own approximately 70% of the combined company and MPG's shareholders will own approximately 30%. David Dauch will continue to serve as Chairman and CEO of AAM.

AAM expects the transaction to be accretive to cash flow and EPS in the first full year following the transaction. By 2018, AAM expects the combined company to achieve annual run-rate cost synergies of between $100 and $120 million.