American Axle & Manufacturing Holdings Inc. (AAM) entered into a definitive agreement to sell its U.S. iron casting operations (Grede) to funds managed by Gamut Capital Management for $245 million. Across 10 manufacturing facilities, Grede develops, manufactures, assembles and supplies ductile, gray and specialty iron castings and machined components for the automotive, commercial vehicle and industrial markets. AAM will retain its El Carmen, Mexico, iron casting operations.

According to AAM, the sale of Grede will enable the company to streamline its business. AAM will continue to optimize and invest in its highly engineered product portfolio and focus on growth opportunities including electrification.