Dauch Corp: Moving to N and $8 Dec 2027 PT from NR; Higher Diversity with Large Synergies from Dowlais Merger, Though Muted GoM and High Leverage Likely to Keep Investors on Sidelines For Now

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Dauch Corp: Moving to N and $8 Dec 2027 PT from NR; Higher Diversity with Large Synergies from Dowlais Merger, Though Muted GoM and High Leverage Likely to Keep Investors on Sidelines For Now

Rajat Gupta AC North America Equity Research

(1-212) 622-6382 07 July 2026 J P M O R G A N

rajat.gupta@jpmorgan.com

Figure 26: Organization Structure of Integration Management Office

Source: Company reports.

Dauch’s Acquisition Track Record and Go Forward Capital

Allocation Framework

Dauch Corporation is no stranger to large acquisitions, having previously doubled its

scale with the 2017 purchase of Metaldyne Performance Group (MPG) for a total

consideration of ~$1.6 bn. The strategic rationale at the time closely mirrored the

current Dowlais combination playbook, with a focus on unlocking scale and size

benefits, broadening geographic and customer diversification, and capturing substantial

cost synergies and content-per-vehicle expansion opportunities. For context, prior to the

deal announcement, Dauch generated ~$3.9 bn in revenue in 2015, while Metaldyne

posted ~$3.0 bn for the same period, with adjusted free cash flow of ~$189 mn and ~

$108 mn, respectively. As noted previously, DCH ultimately outpaced its initial synergy

targets following the Metaldyne deal, driven by strong execution on operational

improvements such as footprint rationalization and capacity consolidation. These efforts

helped offset integration challenges, including the cancelation of certain previously

committed programs and a handful of ill-timed launches. Drawing on lessons from the

Metaldyne integration, Dauch approached the Dowlais transaction with a more rigorous

due diligence process, closely scrutinizing Dowlais’ quoted and installed capacity

against production schedules.