American Axle & Manufacturing (NYSE: AXL) + 12.6% after-hours on Friday following a Bloomberg report that the auto parts supplier is exploring a potential sale and has hired an adviser to help with the process.
A leveraged buyout through a private equity firm is a possible option, according to the report.
American Axle (AXL) faces challenges to maintain revenue as key customers such as Ford and General Motors electrify their vehicles and switch to different kinds of drivetrain components.
The company’s net debt totaled $ 2.67B, or ~ 3.6x earnings, at the end of Q1, which Bloomberg said could be a hurdle to a sale.
American Axle (AXL) recently reported better than expected Q1 adjusted earnings.