Purchase of Brevini Group operations expands offerings for hybrid and electric vehicles
- More cylindrical gearing, planetary hub gears
- 33% more patents, patents pending
- Operations in Italy, China, Germany
Dana Incorporated agreed to buy the power-transmission and fluid-power businesses of Brevini Group S.p.A., a designer/manufacturer of mechanical transmissions and hydraulic and electronic components. The purchase agreement provides for Dana to initially purchase an 80% share in the Brevini businesses, with an option to purchase the remaining 20% by 2020.
Maumee, OH-based Dana values 100% of the two businesses at €325 million (est. $345 million), including assumption of approximately €100 million (est. $106 million) of net debt.
"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," stated 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."
Privately held Brevini Group, based in Reggio Emilia, Italy, has about 2,300 employees at plants in Italy, China, and Germany.
It has engineering and manufacturing operations in China, Germany, and Italy. The businesses being acquired by Dana produce a range of highly engineered mobile planetary hub drives; planetary gearboxes; hydraulic pumps, motors, and valves; and advanced electronic control systems. Their combined sales for 2015 are estimated at €388 million ($412 million.)
According to Dana, Brevini's expertise in cylindrical gearing and planetary hub gears will supplement its own spiral bevel and hypoid gear technologies. Beyond that, Dana predicted the acquisition would advance its own strategy to expand globally, increase it offerings for hybrid and electric vehicles, and broaden its portfolio of products for off-highway vehicle manufacturing.
"Brevini is a strong, well-run business that shares Dana's commitment to serving customers with advanced technologies that deliver exceptional performance and durability," stated James Kamsickas, Dana president and CEO. "We have long admired Brevini's exceptional products, customer focus, and company culture, which are some of the most pertinent reasons we specifically targeted this acquisition – at this opportune time in the off-highway business cycle."
The cash transaction is expected to close in early 2017.