Dana Holdings (DAN) to Acquire SIFCO's Driveline Production Assets in Brazil
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Dana Incorporated (NYSE: DAN) announced a definitive agreement to purchase strategic assets of SIFCO S.A., a leading producer of forged and machined components located in Brazil.
Under the terms of the proposed purchase, Dana would acquire manufacturing and other assets of SIFCO. This acquisition will enable Dana to enhance its vertically integrated supply chain, which will further improve the company's cost structure and customer satisfaction by leveraging SIFCO's extensive experience and knowledge of sophisticated forged components.
"For nearly 70 years, Dana has operated in Brazil, which has long been one of the top ten economies in the world," said James Kamsickas, president and chief executive officer of Dana. "This is an opportune time to invest in strategic and selective assets in Brazil that will further strengthen our position as one of the most trusted, top-tier suppliers to the mobility industry – thus positioning us for future profitable growth throughout the region."
By expanding manufacturing capabilities in Brazil, the acquisition will also enable Dana to help vehicle manufacturers better accommodate local content requirements, which reduce import and other region-specific costs. It will also further strengthen Dana's position as a central source for products that use forged and machined components throughout the region.
"Dana has worked with SIFCO for 40 years as a supplier of key components used in vehicle drivelines," said Mark Wallace, president of Dana Commercial Vehicle Driveline Technologies. "This acquisition will add the talent and capabilities needed to help us meet the requirements of our commercial-vehicle customers and provide value for our light-vehicle and off-highway customers, as well."
SIFCO has operated under judicial restructuring since 2014, and the transaction is subject to closing conditions, including bankruptcy court and regulatory approvals. Final financial terms of the agreement are subject to the outcome of closing conditions. The transaction is expected to be completed by the end of 2016.
Dana designs, manufactures, and distributes products in Brazil for virtually every major global producer of passenger vehicles, commercial trucks, and off-highway equipment.
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