Brevini has reached a definitive agreement to sell 80% of its Power Transmission and Fluid Power Businesses to Dana Incorporated
The combination of Brevini and Dana Off-Highway will create a formidable player in the market with complementary, advanced technologies
REGGIO EMILIA, Italy, Nov. 18, 2016 – Brevini Group, S.p.A. and Dana Incorporated (NYSE: DAN) have reached a definitive agreement for Dana to purchase 80% of the Power Transmission and Fluid Power businesses of Brevini.
The announcement has been officially released today by Dana to the financial community.
Dana is a world leader in the supply of highly engineered drivetrain, sealing, and thermal-management technologies that improve the efficiency and performance of vehicles with both conventional and alternative-energy powertrains. Serving three primary markets – passenger vehicle, commercial truck, and off-highway equipment – Dana provides the world’s original-equipment manufacturers and the aftermarket with local product and service support through a network of nearly 100 engineering, manufacturing, and distribution facilities. Founded in 1904 and based in Maumee, Ohio, the company employs more than 23,000 people in 25 countries on six continents. In 2015, Dana generated sales of nearly $6.1 billion. Forbes Magazine has again selected Dana as one of America’s 100 Most Trustworthy Companies.
Thanks to Brevini’s know-how and capabilities, the acquisition will immediately expand Dana’s product portfolio with adjacent technologies and establish Dana as the only off-highway solutions provider that can manage the power to both move the equipment and perform its critical work functions. It adds technologies for tracked vehicles, doubling Dana’s addressable market for off-highway driveline systems. It also provides a platform of proven technologies that can be leveraged in Dana’s light and commercial-vehicle end markets, helping to accelerate the company’s hybridization and electrification initiatives.
Customers of both companies will benefit from the combination of two complementary organizations, as the agreement creates a stronger, more diverse company, better able to serve their needs.
“Our industry is going through a period of change. The combination of Brevini and Dana will create a formidable player in this dynamic market” said Renato Brevini, president of Brevini Group S.p.A. “Our customers and employees will find an ideal fit with Dana, a company that delivers true value through a commitment to innovation. Dana’s global footprint, operational excellence, deep industry knowledge, and position as a top-tier supplier to manufacturers will raise the profile and market penetration of our products. This is the culmination of the “One Brevini” renovation program, that represents the link between our glorious past and the “eagerness to win” of the future”.
Under the terms of the agreement, Dana plans to initially purchase an 80 percent share in the Brevini power transmission and fluid power businesses, with an option to purchase the remaining 20 percent share by 2020; the purchase does not include Brevini’s wind power business.
The purchase is subject to customary regulatory approvals, and it is expected to close in early 2017.
“Brevini 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. “We have long admired Brevini’s exceptional products, customer focus, and company culture, which are some of the most pertinent reasons we specifically targeted this acquisition – at this opportune time in the off-highway business cycle.”
“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, president of Dana Off-Highway Drivetrain Technologies. “Brevini’s technology portfolio will increase the number of patents and patents pending for Dana’s off-highway business by 33 percent, enabling us to provide our customers with a full range of power-conveyance systems.”