MAUMEE, Ohio—Dana Holding Corp. has enhanced its presence in the automotive aftermarket for silicone-related products with the acquisition of the intellectual property of Magnum Gaskets L.L.C.
Dana will acquire the Magnum brand and all related products, intellectual property and accounts, but the manufacturing of those products will continue through Modern Silicone Technologies Inc., Magnum's parent company. Dana will contract MSI to produce the Magnum-related products, which are produced at Magnum's facility in Clearwater, Fla.
Magnum is headquartered in Bannockburn, Ill. MSI is an American contract manufacturer of high-tech molded gaskets with a focus on liquid silicone rubber injection molding.
Dana finalized the agreement with MSI on Feb. 1. Financial terms were not disclosed.
“Magnum has a depth of product category that gives us incremental penetration into the gasket market that we have today,” said Doug Wolma, vice president and general manager of Dana's global aftermarket. “They have a product portfolio that extends beyond what our current product portfolio does, and it also reaches a customer base in a different channel than we had previously.”
Dana operates four global product groups—commercial vehicle, light vehicle, off-highway and performance technologies. Wolma said Magnum products will fall under Dana's performance technologies group.
Wolma said Magnum's business is largely silicone-related and that the firm brings both proprietary technology and a cost basis the executive believes will give Dana a significant advantage.
Magnum operates almost exclusively in North America, but Wolma added the firm has the infrastructure and the development capabilities to go beyond the U.S., and Dana's global network will be able to help grow Magnum's product line.
Dana said Magnum Gaskets will enhance its sealing product offerings and complement its Victor Reinz and Glaser global aftermarket brands.
The Magnum Gaskets brand includes cylinder head, valve cover, oil pan and manifold gasket sets for the North American automotive aftermarket. Dana said distribution of Magnum products to existing customers will not be disrupted.
Brian Roberts, Dana's aftermarket product planning manager who also is responsible for growing the Magnum line, said the Magnum brand started with liquid silicone, and LSR remains the primary medium that the firm manufactures in, though Magnum also deals with some heat-cured rubber.
David Nash, senior director of engineering for Dana's power technologies group, said the majority of Dana's molded gasket product line consists of heat-cured rubbers, such as ACM and AEM.
The company does some work with HNBR and fluoroelastomers. Dana uses very little liquid silicone rubber within its current operation, so the Magnum business will help the firm enhance its LSR presence.
Roberts said in the aftermarket, LSR is a viable alternative to heat-cured rubbers. Nash added that on the original equipment side, manufacturers still are primarily demanding heat-cured elastomers, but the company also is seeing trends toward products geared for higher temperature applications, which could mean more opportunity for LSR.
“The biggest advantage liquid silicone has over Dana's traditional heat-cured rubber is cycle times,” Roberts said. “Liquid silicone cycle times are significantly less than heat-cured rubber, so you can get more throughput through per hour. The post-cure is reduced as well, so we can get more parts through per hour.”
Roberts said Magnum currently sells to warehouse distributors, a channel below the big retailers, focusing on both light and heavy duty vehicles.
“The sheer size and resources available with Dana is going to definitely enhance the speed to market,” he said. “That's the biggest advantage I see to Magnum Gaskets growing, just having the Dana muscle behind it.”
Dana produces highly engineered driveline, sealing and thermal management technologies serving the passenger vehicle, commercial truck and off-highway equipment worldwide. The firm is based in Maumee and employs 23,000 in 25 countries.