Dana Inc. is set to buy Modine Manufacturing’s to sell the liquid-cooled systems portion of its automotive business, representing approximately 70% of the revenue from that unit. Their purchase agreement sets the sale prices at $1.00 plus assumption of “certain financial liabilities.” Neither the buyer nor the seller has estimated the transaction value.
The sale includes eight in China, Germany, Hungary, Italy, the Netherlands, and the United States.
Modine, headquartered in Racine, Wis., develops and manufactures thermal-management systems for CIS, BHVAC, and HDE markets, but is exiting the automotive sector.
According to Dana – the designer/manufacturer of light vehicle, commercial vehicle, and EV axles, driveshafts, transmissions, and electrodynamic, thermal, sealing, and digital systems – the new operations bring approximately $300 million in revenue (2019) and expand the scope of its Power Technologies business by approximately 30%. The new products capabilities will balance Dana’s PT portfolio “with expanded thermal content, and leverage(e) complementary manufacturing processes and supply chains.”
Dana also noted the new operations would accelerate its electrification program with EV thermal technologies, and strengthen its relationships with light-vehicle manufacturers. It also expects the purchased assets to diversify its Power Technologies footprint 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,” stated chairman and CEO James Kamsickas. “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.”
