Dana Inc. has signed a definitive agreement to purchase a portion of the thermal-management business of Modine Manufacturing Company’s automotive segment. The agreed purchase price is $1 with the assumption of certain financial liabilities.
The transaction further strengthens Dana’s Power Technologies business unit.
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 aims to bring numerous benefits to Dana, including:
- Adds approximately $300 million in revenue based on 2019 results, and is expected to contribute $30 million in adjusted EBITDA on a post-synergy basis
- Increases the scale of Dana’s Power Technologies business by approximately 30%, balancing the product portfolio with expanded thermal content, and leveraging complementary manufacturing processes and supply chains
- Accelerates the company’s electrification strategy with electric-vehicle thermal technologies, a key source of market growth
- Strengthens relationships with new and existing light-vehicle manufacturers
- Diversifies 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.
