A replaceable deformable insert is disposed in a clinching die cavity having an annular recess adjacent the insert. A first layer is established on a second layer and secured between a retractable punch and the clinching die. The punch is pressed into the first layer to form a depression in the first and second layers. The first and second layers are compressed together between the punch and the clinching die, creating hydrostatic pressure in the first and second layers and the insert. A portion of the insert is extruded to fill the annular recess with insert extrudate, while a portion of the second layer is simultaneously radially extruded into an annular space previously occupied by the insert. A portion of the first layer is simultaneously radially extruded into an annular volume previously occupied by the second layer, thereby forming an interlocking assembly of the first and second layers and insert.