MAUMEE, Ohio — Dana Inc. has agreed to buy the thermal-management business of Modine Manufacturing Co.'s automotive segment, a move designed to strengthen Dana's Power Technologies business unit.
The acquisition—for $1 plus the assumption of certain financial liabilities—will extend Dana's product portfolio of chillers and water-charged air coolers with exhaust-gas recirculation, and expand its manufacturing capabilities.
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 company said.
The transaction brings numerous benefits to Dana, including:
• Adding approximately $300 million in revenue based on 2019 results, and is expected to contribute $30 million in adjusted EBITDA on a post-synergy basis;
• Increasing the scale of Dana's Power Technologies business by approximately 30 percent, balancing the product portfolio with expanded thermal content, and leveraging complementary manufacturing processes and supply chains;
• Accelerating the company's electrification strategy with electric-vehicle thermal technologies, a key source of market growth;
• Strengthening relationships with new and existing light-vehicle manufacturers; and
• Diversifying the global geographic footprint of Dana's Power Technologies operations in the U.S., 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," Dana Chairman and CEO James Kamsickas said.
"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 facilities with operations in China, Germany, Hungary, Italy, the Netherlands and the U.S., the company added. The business serves a global roster of original-equipment and new mobility vehicle manufacturers.