Dana buys Brevini's power transmission and fluid power activities
The US vehicle technologies supplier Dana Incorporated is acquiring the power transmission and fluid power businesses of the Italian Brevini Group in a deal that values the group at €325m, including the assumption of about €100m of debt. Dana plans initially to buy an 80% share in the Brevini businesses, with an option to acquire the remaining 20% by 2020.
Dana – which supplies engineered drivetrain, sealing and thermal management technologies, mainly for passenger vehicles, trucks and off-road equipment – is particularly interested in Brevini’s products for these applications. The acquisition does not include Brevini’s wind power business.
Although Dana’s initial announcement of the acquisition focused on the vehicular applications for Brevini’s technologies, a spokesman has told Drives & Controls that “this does not diminish our commitment to the industrial market”. Dana, he points out, has been addressing the industrial sector for more than 70 years with driveshaft and sealing products.
“Brevini’s expertise, combined with Dana’s experience, will allow us to continue to grow this business,” the spokesman says. “In fact, Brevini’s industrial expertise is one of the factors that made this acquisition so appealing.”
In the vehicular market, the acquisition will expand Dana's product portfolio and establish it as the only off-road supplier that can manage the power needed both to move equipment and to perform work functions. The deal will also accelerate Dana’s hybrid and electric vehicles initiatives.
Brevini technologies that Dana is buying include mobile planetary hub drives, planetary gearboxes, hydraulic pumps, motors, valves, and electronic control systems. Brevini's expertise in cylindrical and planetary hub gears will supplement Dana’s existing activities in spiral bevel and hypoid gear technologies.
Brevini, founded in 1960, employs about 2,300 people. The family-owned business has engineering and manufacturing operations in China, Germany, and Italy, with a network of 30 sales subsidiaries around the world. The businesses being bought had sales worth €388m in 2015.
“Dana's global footprint, operational excellence, deep industry knowledge, and position as a top-tier supplier to manufacturers will raise the profile and market penetration of our products,” predicts Brevini president, Renato Brevini.
Dana, founded in 1904 and based in Ohio, employs more than 23,000 people in 25 countries. In 2015, it generated sales worth nearly $6.1bn.