Dana to acquire majority stake in Italian supplier
Dana Inc., the U.S.-based drivetrain supplier, has agreed to buy the power-transmission and fluid-power businesses of Italy's Brevini Group, the company said Friday.
Dana plans to buy an 80 percent share in the Brevini businesses, with an option to purchase the remaining 20 percent by 2020.
Dana has valued 100 percent of the businesses at $344.6 million (325 million euros), which includes the assumption of about $106 million (100 million euros) of net debt.
The acquisition, which is expected to close in early 2017, will be funded with cash on hand, with existing Brevini debt to be refinanced in the future, Dana said.
The Reggio Emilia, Italy-based company specializes in mobile planetary hub drives including planetary gearboxes, hydraulic pumps, motors, valves and advanced electronic control systems.
Dana said the acquisition will help accelerate the company's hybridization and electrification initiatives for light- and commercial-vehicle end markets.
"Brevini's product line is a perfect complement to Dana's current offerings helping us to increase the amount of Dana content on construction, mining, material-handling and other off-highway equipment," said Aziz Aghili, Dana Off-Highway Drivetrain Technologies president, in a statement.
Brevini has engineering and manufacturing operations in China, Germany and Italy and employs 2,300 people.
In October, Dana announced that it reached an agreement to buy Brazilian forged-components supplier Sifco S.A. That transaction is expected to be completed by the end of the year.
In August, Dana formally changed its name from Dana Holding Corp. to Dana Inc.
Dana ranks No. 39 on Automotive News Europe’e list of the top 100 global suppliers, with worldwide parts sales to automakers of $6.1 billion in 2015.