Dana to buy Oerlikon Drive Systems

By Thomas Allen31 July 2018

Dana Oerlikon

US-based manufacturer Dana has signed an agreement to purchase the Drive Systems segment of Oerlikon, a manufacturer of high-precision gears, planetary hub drives and products that support vehicle electrification, based in Switzerland.

Committed financing has been arranged to complete the transaction, which is worth CHF600 million (US$607 million).

Jim Kamsickas, president and CEO of Dana, said, “A great fit culturally, this investment will deliver significant long-term value by accelerating our commitment to vehicle electrification and strengthening the technology portfolio for each of our end markets, while further expanding and balancing the manufacturing presence of our off-highway business in key geographical markets.”

It was said that the deal would provide Dana great scope to drive profitable growth because it extends the company’s technology portfolio, provides products, controls and software that support vehicle electrification in each of Dana’s end markets, and it enhances the company’s global manufacturing presence, in particular bringing Dana closer to customers in key growth markets such as China and India. The acquisition also adds five R&D (research and development) facilities to Dana’s network of technology centres.

Jim Kamsickas, Dana

Jim Kamsickas, president and CEO of Dana

Kamsickas said,“This transaction is a game changer, as it positions Dana as the only full e-Propulsion design, engineering, and manufacturing systems supplier.”

Oerlikon Drive Systems generated revenue of CHF730 (US$738.6 million) in 2017 and the company employs approximately 5,900 people. It operates ten manufacturing and engineering facilities in China, India, Italy, the UK and the US, with two additional facilities under construction in China.

Subject to regulatory approvals, the acquisition is expected to close towards the end of 2018 or early in 2019.

Dana’s second quarter results

In its financial results for the second quarter of 2018, Dana has reported a US$214 million increase in sales to US$2.1 billion, representing growth of 12% over the past year. This was attributed mainly to higher demand across the company’s three end markets, conversion of its sales backlog, and favourable foreign currency translation.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came to US$246 million – an increase of US$29 million compared to 2017.

Kamsickas said, “Dana continued our sales growth trajectory with 12% higher revenue compared with last year as we continue to grow organically, benefiting from higher end-market demand and winning new business.”

In light of these positive results and the agreement to acquire Oerlikon, Dana has affirmed its 2018 guidance ranges, saying that sales for this year are expected to be at the high end of its guidance range.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, Access, Lift & Handlers Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Featured Training From Easybook
NYC SST Online Training

The clock is ticking… Construction workers in New York City – have you fulfilled your required Site Safety Training (SST)? Get your SST card online now

Latest Events
Last chance to register for the virtual ALH Conference
The ALH Conference is set to kick off (virtually) at 9 a.m. CST on Tuesday, Sept. 14. This is your last chance to register for the live event
ALH Conference shifts to virtual format
The ALH Conference, set for September 14, will be held online, ALH and KHL Group have announced. Registration is now open
ARA Show: Rental-ready
The ARA Show will return to Las Vegas this October for the first time in eight years. ALH provides a preview to the all-things-rental event.
Off-Highway Research

The gold standard in market research

Off-Highway Research offers a library of more than 200 regularly updated reports, providing forensic detail on key aspects of the construction equipment industry.

Our detailed insights and expert analyses are used by over 500 of the world’s largest and most successful suppliers, manufacturers and distributers, to inform their strategic plans and deliver profitable growth.

Click here to visit our website

CONNECT WITH THE TEAM
Lindsey Anderson Editor, Access, Lift & Handlers Tel: +1 312 929 4409 E-mail: lindsey.anderson@khl.com
Tony Radke Sales Manager Tel: +1 480 478 6302 E-mail: tony.radke@khl.com
CONNECT WITH SOCIAL MEDIA