Dana Incorporated has completed acquisition of the power-transmission and fluid-power businesses of Brevini Group, S.p.A.
The combination of Brevini into Dana's business creates numerous opportunities for profitable growth. The company says that the acquisition:
* Immediately expands Dana's product portfolio and establishes the company as the only solutions provider that can manage travel power for a piece of mobile equipment and also manage power for that equipment to perform its work, such as swinging, boom raising, and load hoisting.
* Expands Dana's market by enabling the company to offer driveline systems for tracked off-highway vehicles, in addition to wheeled ones;
* Significantly broadens the opportunities in industrial markets – an important segment that Dana has served for more than 70 years;
* Provides a platform of proven technologies that can be offered to Dana's on-highway customers; and
* Accelerates Dana's hybridization and electrification initiatives.
"Brevini is a company we have long admired. It is a strong, well-run business that shares Dana's commitment to serving customers with advanced technologies that deliver exceptional performance and durability," said James Kamsickas, president and chief executive officer of Dana. "Brevini's product line is a perfect complement to Dana's current offerings, which is why we executed this transaction at an opportune time in the off-highway business cycle."
The acquisition of Brevini aligns with Dana's strategy, which includes leveraging core expertise, strengthening customer centricity, expanding global markets, commercializing new technologies, and accelerating hybridization and electrification.
Dana purchased an 80% share in the Brevini businesses, with an option to purchase the remaining 20% by 2020.
Dana has valued 100% of the Brevini businesses at €325 million ($347.9 million U.S.), including assumption of approximately €100 million ($107 million U.S.) of net debt. The transaction was funded with cash on hand.
Founded in 1960, the privately held Brevini Group employs about 2,300 people. It has major engineering and manufacturing operations in China, Germany, and Italy, with a network of 30 sales subsidiaries and nine service centers around the world. The businesses being acquired reported sales of €388 million ($415.3 million U.S.) in 2015.
"Brevini's customers and employees will find an ideal fit with Dana, a company that delivers true value to customers through a commitment to innovation," said Renato Brevini, president of Brevini Group. "Dana's global footprint, operational excellence, deep knowledge of the vehicular and industrial markets, and position as a top-tier supplier to manufacturers will raise the profile and market penetration of our products."
Brevini technologies purchased by Dana include a wide range of highly engineered mobile planetary hub drives; planetary gearboxes; hydraulic pumps, motors, and valves; and advanced electronic control systems.
Brevini's expertise in cylindrical gearing and planetary hub gears will supplement Dana's long history and market leadership in spiral bevel and hypoid gear technologies. Brevini's technology portfolio increases the patents and patents pending for Dana's off-highway business by 33 percent.
"Brevini's product portfolios will help us to increase Dana content on construction, mining, material-handling, and other off-highway equipment," said Aziz Aghili, president of Dana Off-Highway Drive and Motion Technologies. At the same time, it expands our opportunities in the industrial market, which has been an important sector for Dana for nearly three quarters of a century."
With the completion of this transaction, Brevini financial results will be included in the Off-Highway Drive and Motion Technologies segment, which was previously named Off-Highway Drivetrain Technologies.
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