Dana to purchase select Brevini Group businesses

dana-logo-image-copyDana Incorporated today announced a definitive agreement to purchase the power-transmission and fluid power businesses of Brevini Group, S.p.A.

Under terms of the agreement, Dana plans to initially purchase an 80% share in the Brevini businesses, with an option to purchase the remaining 20% by 2020. Dana has valued 100 percent of the Brevini businesses at €325 million, including the assumption of approximately €100 million of net debt.

The transaction will be funded with cash on hand, with existing Brevini debt to be refinanced in the future. Subject to customary regulatory approvals, the acquisition is expected to close in early 2017. Dana expects the purchase to be accretive to earnings in 2017.

The acquisition of Brevini aligns with Dana’s enterprise strategy, which includes leveraging core expertise, strengthening customer centricity, expanding global markets, commercializing new technologies, and accelerating hybridization and electrification.

Founded in 1960, the privately held Brevini Group employs approximately 2,300 people. It has 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 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 S.p.A.

Brevini technologies that will be 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 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%, enabling us to provide our customers with a full range of power-conveyance systems.”

Dana
www.dana.com

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