Rino Tarolli, left, of Dana Italy, and Renato Brevini, president of Brevini Group, congratulate each other over Dana's acquisition of Brevini's fluid power and power transmission businesses.
Officials at Dana Inc., Maumee, Ohio, recently announced the acquisition of Brevini's Fluid Power and Tranmission Groups of Brevini SpA, Reggio Emilia The acquisition will immediately expand Dana’s product portfolio with adjacent technologies and establish Dana as the only off-highway solutions provider that moves the equipment and performs its critical work functions. It adds technologies for tracked vehicles, and provides a platform of proven technologies that can be leveraged in Dana’s light and commercial-vehicle end markets, helping to accelerate the company’s hybridization and electrification initiatives.
“Our industry is going through a period of change,” says Brevini President Renato Brevini. “The combination of Brevini and Dana will create a formidable player in this dynamic market...Our customers and employees will find an ideal fit with Dana, a company that delivers true value through a commitment to innovation. 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.”
Under the terms of the agreement, Dana plans to initially purchase an 80% share in the Brevini power transmission and fluid power businesses, with an option to purchase the remaining 20% share by 2020; the purchase does not include Brevini’s wind power business. The purchase is subject to customary regulatory approvals, and it is expected to close in early 2017.
Dana is a supplier of highly engineered drivetrain, sealing, and thermal-management technologies that improve the efficiency and performance of vehicles with both conventional and alternative-energy powertrains. Serving three primary markets— passenger vehicle, commercial truck, and off-highway equipment—Dana provides original equipment manufacturers and the aftermarket with local support for products and services through a network of nearly 100 engineering, manufacturing, and distribution facilities. Founded in 1904, the company employs more than 23,000 people in 25 countries on six continents. In 2015, Dana generated sales of nearly $6.1 billion.
“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,” says 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 3%, enabling us to provide our customers with a full range of power-conveyance systems.”
In a press conference, James Kamsickas, president and ceo of Dana Inc., added, "We are happy to announce that Dana has entered into a definitive agreement to purchase the Power Transmission and Fluid Power businesses of the Brevini Group. This acquisition furthers our growth strategy by leveraging our core knowledge of off-highway markets and expands our market reach."
"Brevini is a fantastic business with a long history and deep technological and market know-how. Brevini is a global leader in off-highway power conveyance systems. This acquisition will add about $400 million of annual sales to Dana's off-highway drive chain segment. The acquisition will immediately expand Dana's product portfolio with adjacent technologies that established Dana as the only solutions provider that can manage energy and power conveyance from the engine to the wheels and to machine work devices.
"It adds technologies for tracked vehicles something that we do not do today, doubling our addressable market for the off-highway driveline systems. It also provides proven technologies that can be leveraged in Dana's light and commercial vehicle end markets, helping to accelerate the company's hybridization and electrification initiatives.
"Currently, [our off-highway drive train business] engineers and manufactures axles, drive shafts, transmissions, and hybrid solutions for wheeled off-highway vehicles in multiple end markets in every regional world. The technologies we supply transfer the power from the engine and allow these wheeled vehicles to move. Brevini brings to Dana a different type of power conveyance technology.
Kamsickas outlined four fundamental technologies Brevini provides for off-highway vehicles: planetary hub drives, hydraulic systems and electronic controls to power equipment, engineered winch systems, and, to a lesser degree, gear boxes and systems for offshore equipment.
Kamsickas continued, "Brevini's products fit perfectly with Dana's. Together, we can offer a full range of power conveyance systems with almost no product overlap. The addition of Brevini's planetary drive technology will allow Dana to enter the tracked vehicle drive train segment of all new commercial channel for us. In addition to opening up this new market, we can bring Brevini's other products—such as hydraulic systems and slew drives—to our core market of wheeled off-highway vehicles further expanding our content."