Under terms of the agreement, Dana plans to initially purchase an 80% share in the Brevini businesses, with an option to purchase the remaining 20% by 2020. Dana has valued 100% of the Brevini businesses at €325 million (US$345.6 million), including the assumption of approximately €100 million of net debt.

The company said that the acquisition will immediately expand its product portfolio with adjacent technologies and establish Dana as the only off-highway solutions provider that can manage the power to both move the equipment and perform its critical work functions. It adds technologies for tracked vehicles, doubling Dana's addressable market for off-highway driveline systems. It also 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 hybridisation and electrification initiatives.

James Kamsickas, president and chief executive officer of Dana, said: “Brevini is a strong, well-run business that shares Dana's commitment to serving customers with advanced technologies that deliver exceptional performance and durability. We have long admired Brevini's exceptional products, customer focus, and company culture, which are some of the most pertinent reasons we specifically targeted this acquisition – at this opportune time in the off-highway business cycle.”

Subject to customary regulatory approvals, the acquisition is expected to close in early 2017. Dana stated that the acquisition of Brevini aligns with the company’s enterprise strategy, which includes leveraging core expertise, strengthening customer centricity, expanding global markets, commercialising new technologies, and accelerating hybridisation and electrification.

Renato Brevini, president of Brevini Group, said: “Brevini's customers and employees will find an ideal fit with Dana, a company that delivers true value to customers 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.”

Brevini technologies that will be purchased by Dana include a wide range of highly engineered mobile planetary hub drives; planetary gearboxes; hydraulic pumps, motors, and valves; and advanced electronic control systems. Brevini's expertise in cylindrical gearing and planetary hub gears will supplement Dana's long history and market leadership in spiral bevel and hypoid gear technologies.

Aziz Aghili, president of Dana off-highway drivetrain technologies, commented: “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. Brevini's technology portfolio will increase the number of patents and patents pending for Dana's off-highway business by 33%, enabling us to provide our customers with a full range of power-conveyance systems.”