DETROIT, Mi. — Michigan-based Metaldyne Performance Group, Inc. has been purchased by American Axle & Manufacturing Holdings, Inc. The transaction includes $1.6 billion in cash and the assumption of $1.7 billion in debt.
MPG announced a $31 million expansion at their North Vernon facility that will add up to 125 new jobs by 2019. AAM has Indiana operations in Fort Wayne and Rochester.
AAM expects the merger to bring as much as $120 million in operational savings. The companies produce powertrains, drivelines and driveline products. The combined company will have nearly $7 billion in annual sales. The headquarters will remain in Detroit.
Chief Executive Officer David Dauch says “AAM’s transformational acquisition of MPG brings together two complementary Tier 1 organizations to create a company with greater scale and increased diversity across products, customers and end markets. MPG’s expertise in complex, highly-engineered powertrain components and its global footprint will be tremendous assets to AAM.”
