DETROIT (AP) - Auto parts maker American Axle & Manufacturing said last Thursday that it is paying $1.6 billion in cash and stock for Metaldyne Performance Group Inc., which makes parts for engines, transmissions or suspensions.
American Axle also reported third-quarter earnings that beat Wall Street analyst expectations, although its revenue and full-year outlook did not.
Shares of American Axle fell almost 13 percent in morning trading last Thursday.
As part of the deal, which expected to close in the first half of next year, Metaldyne Performance shareholders will each receive $13.50 per share and 0.5 of American Axle stock for every Metaldyne Performance stock they own. American Axle shareholders will own about 70 percent of the combined company, and Metaldyne Performance shareholders will own about 30 percent.
American Axle said it will also assume $1.7 billion in debt from Metaldyne Performance. American Axle is based in Detroit, while Metaldyne Performance is in nearby Southfield.
Separately last Thursday, American Axle reported third-quarter net income of $61.7 million, or 78 cents per share, beating the 77 cents per share Wall Street analysts expected, according to Zacks Investment Research.
It posted revenue of $1.01 billion in the period, which was below Street forecasts of $1.02 billion, according to Zacks.
The company expects full-year revenue of $3.95 billion, below the $3.97 billion analysts expected, according to FactSet.
Shares of American Axle fell $2.14, or 12.9 percent, to $14.47 in morning trading last Thursday. Its stock is down 36 percent so far this year. Metaldyne Performance shares rose $6.20, or 43.4 percent, to $20.50.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on AXL at https://www.zacks.com/ap/AXL.
Published: Mon, Nov 07, 2016
