AAM stockholders approve proposed combination with Dowlais

DETROIT - American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) announced Tuesday that its stockholders have approved all proposals related to the company’s recommended offer to acquire Dowlais Group plc.

The approval came during a special meeting of AAM stockholders, marking a significant step toward completing the transaction. Dowlais shareholders are scheduled to vote on the combination at their Court Meeting and General Meeting on July 22, 2025.

Following the combination, AAM intends to seek a secondary listing and admission of its shares to trading on the London Stock Exchange. The combined entity is expected to generate annual revenues of approximately $12 billion on a non-adjusted combined basis, significantly expanding from AAM’s current annual revenue of $5.9 billion. InvestingPro analysis suggests the company is currently undervalued, with strong financial health metrics and an attractive EV/EBITDA ratio of 3.85x.

The merger would create a global automotive supplier with expanded geographic presence across multiple automotive segments supporting internal combustion engine, hybrid and electric powertrains.

"We are very pleased that our stockholders recognized the tremendous value creation opportunity in combining these two outstanding automotive suppliers," said David C. Dauch, Chairman and Chief Executive Officer of AAM, who will lead the combined company.

Antitrust and other regulatory approvals are progressing, with the deal anticipated to close in the fourth quarter of 2025, subject to Dowlais shareholder approval and completion of remaining conditions.

AAM designs and manufactures driveline and metal forming technologies for various vehicle types, with over 75 facilities in 16 countries. Dowlais, comprising GKN Automotive and GKN Powder Metallurgy, operates more than 70 manufacturing facilities across 19 countries.

The company will file a Current Report on Form 8-K with the SEC to report the voting results from the special meeting, according to the press release statement. Investors looking for deeper insights can access comprehensive analysis through InvestingPro’s detailed Research Report, which includes additional metrics and expert analysis of AAM’s financial position ahead of its upcoming earnings release on August 1, 2025.

In other recent news, American Axle & Manufacturing Holdings reported its first-quarter 2025 earnings, aligning with analysts’ expectations by achieving an EPS of $0.09 and surpassing revenue forecasts with $1.41 billion. This performance reflects the company’s strategic direction and financial health. UBS upgraded American Axle’s stock from Neutral to Buy, citing the longevity of General Motors’ platform and potential value from a proposed transaction with UK-based Dowlais. The acquisition of Dowlais is structured as a business combination involving cash and stock, with American Axle seeking shareholder approval to increase authorized shares to facilitate this deal.

American Axle shareholders approved an amended incentive plan aimed at attracting and retaining talent during the company’s annual meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent accounting firm for 2025 was ratified. The company is also expanding its electric vehicle product line, preparing for strategic transactions to enhance its EV capabilities. These developments come amidst a broader industry context of evolving regulatory and market conditions, with American Axle maintaining a strong adjusted EBITDA margin of 12.6% despite a year-over-year revenue decline.

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