FormTech Industries confirms its recent asset swap with American Axle & Manufacturing, saying in a statement that it has “solidified its position as the leading supplier of large die, Hatebur hot forgings in the world.”
“One of the realities of today’s marketplace is that companies have to position themselves to play to their strengths,” explained FormTech CEO Mike Ryan. “This transaction allows FormTech to reinforce its strategic position for the long-term.”
The deal was reported December 5. FormTech takes control of American Axle’s Tonawanda, NY, forging operation, which includes three large-die Hatebur hot forging machines and a light-vehicle hub and spindle business. As originally described, the deal involves an unnamed third party buying the facility and leasing it to FormTech. “There is synergy for both parties,” Ryan was quoted at that time.
American Axle is taking over FormTech’s hypoid pinion and ring gear forgings business, and its near-net differential gear operations in Fort Wayne, IN.
FormTech, based in Royal Oak, MI, manufactures forged steel components for automotive light-vehicle, heavy-truck, and industrial markets.
“This move, combined with the recently announced creation of a hot-forging joint-venture in Pune, India, will help to establish FormTech as the recognized leader in high-volume, highly engineered hot forgings for transmission, transaxle, and wheel-end applications with operations in North America and Asia,” the company summarized in its statement.