Dana to Purchase Drive Systems Segment of Oerlikon Group
Acquisition adds complementary products, key electrification technologies for each of Dana’s end markets
- MAUMEE, Ohio, July 30, 2018 /PRNewswire/ — Dana Incorporated (NYSE: DAN) announced today that it has signed a definitive agreement to purchase the Drive Systems segment of the Oerlikon Group (SIX: OERL), a global manufacturer of high-precision gears; planetary hub drives for wheeled and tracked vehicles; and products, controls, and software that support vehicle electrification across the mobility industry.Under the terms of the agreement, Dana will acquire Oerlikon’s Drive Systems business for CHF 600 million (approximately $600 million). Committed financing has been arranged to complete the transaction, which will be immediately accretive to earnings upon closing. Subject to customary regulatory approvals, the acquisition is expected to close in late 2018 or the first quarter of 2019.
Consistent with Dana’s enterprise strategy, the acquisition of Oerlikon Drive Systems provides numerous opportunities to drive profitable growth. Among them, the transaction:
• complements and extends Dana’s current technology portfolio, especially with respect to high-precision helical gears for the light- and commercial-vehicle markets and planetary hub drives for wheeled and tracked vehicles in the off-highway market;
• provides products, controls, and software that support vehicle electrification in each of Dana’s end markets – light vehicle, commercial vehicle, and off-highway;
• optimizes Dana’s global manufacturing presence to be closer to customers in key growth markets such as China and India, as well as the United States; and
• adds five research and development facilities to Dana’s extensive network of technology centers.
“Oerlikon Drive Systems is a well-respected technology company that has provided exceptional product innovation and customer satisfaction for nearly a century,” said Jim Kamsickas, president and chief executive officer of Dana. “A great fit culturally, this investment will deliver significant long-term value by accelerating our commitment to vehicle electrification and strengthening the technology portfolio for each of our end markets while further expanding and balancing the manufacturing presence of our off-highway business in key geographical markets.