Dana Agrees to Buy Assets From U.S. Manufacturing Corp.
Dana Inc. announced a definitive agreement to purchase axle housing and driveline shaft manufacturing operations from U.S. Manufacturing Corp.
Under terms of the agreement, Dana plans to acquire USM's Warren, Michigan, assets in exchange for $100 million in cash, Dana said.
The acquisition will increase Dana's revenue from passenger and commercial vehicle manufacturers and will transition significant purchased content to vertically integrated supply, according to the Maumee, Ohio-based company.
Dana will gain USM's proprietary tube-manufacturing processes and intellectual property for lightweight thin-wall axle tubes and hollow axle shafts that create varying wall sizes engineered for specific applications. This allows for greater strength in required areas during operation, while delivering a significant overall weight savings for the component, according to Dana.
The purchase is subject to customary closing conditions and is expected to be completed in the first quarter of 2017, according to the company.
