Dana to purchase drive systems business

Dana, a supplier of vehicle driveline technologies, announced an agreement to purchase the drive systems segment of Oerlikon Group, a global manufacturer of products, controls and software that support vehicle electrification.

Under the terms of agreement, Dana will acquire Oerlikon’s drive system business for about $600 million, and committed financing has been arranged to complete the transaction, which will be immediately accretive to earnings upon closing, according to the company.

As part of the acquisition, Dana will add five research and development facilities to the company’s existing network of technology centers. The transaction will also add to Dana’s global manufacturing presence in markets such as China and India, as well as the United States.

The acquisition is expected to close in late 2018 or the first quarter of 2019.

“Oerlikon drive systems is a well-respected technology company that has provided exceptional product innovation and customer satisfaction for nearly a century,” says Jim Kamsickas, president and CEO 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.”