Dana Incorporated has signed a definitive agreement to purchase the Drive Systems segment of the Oerlikon Group, a global manufacturer of high-precision gears; planetary hub drives for wheeled and tracked vehicles; and products, controls, and software that support vehicle electrification across the mobility industry. Under the terms of the agreement, Dana will acquire Oerlikon's Drive Systems business for CHF 600 million (approximately $ 600 million).
The acquisition complements and extends Dana's current technology portfolio, especially with respect to high-precision helical gears for the light- and commercial-vehicle markets and planetary hub drives for wheeled and tracked vehicles in the off-highway market. The transaction provides products, controls, and software that support vehicle electrification in each of Dana's end markets – light vehicle, commercial vehicle, and off-highway. The deal optimises Dana's global manufacturing presence to be closer to customers in key growth markets such as China and India, as well as the US. The transaction adds five research and development facilities to Dana's extensive network of technology centers.
"Oerlikon's technology will enable Dana to expand our product offerings for customers in the off-highway segment while complementing our rapidly growing portfolio of electrified product offerings for all end markets. Further, Oerlikon's manufacturing and R&D footprint enhances our ability to serve many of our current customers while connecting us with new customers, especially in India and China,” said Jim Kamsickas, President and Chief Executive Officer of Dana.
Founded in 1919, Oerlikon Drive Systems generated revenue of CHF 730 million (approximately $ 730 million) in 2017. The business employs approximately 5,900 people and operates 10 manufacturing and engineering facilities in China, India, Italy, the UK, and the US, with two additional facilities under construction in China. The business serves a global roster of original-equipment manufacturers.