MAUMEE, Ohio, Nov. 2, 2020 /PRNewswire/ -- Dana
Incorporated (NYSE: DAN) announced today that it has signed a
definitive agreement to purchase a portion of the
thermal-management business of Modine Manufacturing Company's
(NYSE: MOD) automotive segment. The transaction further strengthens
Dana's Power Technologies business unit. The agreed purchase price
is $1 with the assumption of certain
financial liabilities.
Subject to customary regulatory approvals and other closing
conditions, the transaction is expected to be completed in the
first half of 2021 and will be consolidated within Dana's Power
Technologies segment. The acquisition balances the company's
current product portfolio by extending its offerings in chillers
and water-charged air coolers, adding exhaust-gas recirculation,
and expanding its manufacturing process capabilities.
The transaction brings numerous benefits to Dana, including:
- adding approximately $300 million
in revenue based on 2019 results, and is expected to contribute
$30 million in adjusted EBITDA on a
post-synergy basis;
- increasing the scale of Dana's Power Technologies business by
approximately 30 percent, balancing the product portfolio with
expanded thermal content, and leveraging complementary
manufacturing processes and supply chains;
- accelerating the company's electrification strategy with
electric-vehicle thermal technologies, a key source of market
growth;
- strengthening relationships with new and existing light-vehicle
manufacturers; and
- diversifying the global geographic footprint of Dana's Power
Technologies operations in the United
States, Europe, and
Asia.
"Dana's in-house engineering and manufacturing of
thermal-management technologies is an important differentiator, and
this acquisition is synergistic to our current portfolio, making it
a natural fit for our Power Technologies business," said
James Kamsickas, Dana chairman and
CEO. "In addition to strengthening relationships with core
customers in Europe and
Asia, it presents opportunities to
leverage our scale to expand business with new mobility
manufacturers and optimize the business to deliver significant
value to our shareholders."
This acquisition includes eight major facilities with operations
in China, Germany, Hungary, Italy, the
Netherlands, and the United
States. The business serves a global roster of
original-equipment and new mobility vehicle
manufacturers.
Citigroup Global Markets, Inc.; Hunton Andrews Kurth LLP; and
Hogan Lovells served as advisers to Dana.
About Dana Incorporated
Dana is a world leader in providing power-conveyance and
energy-management solutions that are engineered to improve the
efficiency, performance, and sustainability of light vehicles,
commercial vehicles, and off-highway equipment. Enabling the
propulsion of conventional, hybrid, and electric-powered vehicles,
Dana equips its customers with critical drive and motion systems;
electrodynamic technologies; and thermal, sealing, and digital
solutions.
In 2019, the company reported sales of $8.6 billion with 36,000 associates in 34
countries across six continents. Based in Maumee, Ohio, USA, and founded in 1904,
Recognized by Forbes magazine as a World's Best Employer,
Dana has established a high-performance culture that focuses
on its people, and the company has earned recognition around the
world as a top employer. Learn more at dana.com.
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SOURCE Dana Incorporated