American Axle & Manufacturing To Sell U.S. Iron Casting Operations For $245 Mln

(RTTNews) - American Axle & Manufacturing Holdings Inc. (AXL) said Wednesday that it agreed to sell its U.S. iron casting operations to funds managed by Gamut Capital Management for an aggregate purchase price of $245 million.

The sale price will consist of $185 million in cash and a $60 million deferred payment obligation.

The company said it will primarily use net cash proceeds to repay outstanding indebtedness. The transaction is expected to close in the fourth quarter of 2019.

Meanwhile, the company noted that it will retain its El Carmen, Mexico iron casting operations.