Dana has agreed to purchase the axle housing and driveline shaft manufacturing operations of U.S. Manufacturing Corporation.
The purchase is expected to be completed in the first quarter of 2017.
"The acquisition of USM's Warren operation allows us to capitalize on an important opportunity that will strengthen the supply chain for several of Dana's most strategic customers and programs," said Jim Kamsickas, Dana president and CEO. "The transaction also includes process technologies that augment Dana's existing portfolio of lightweighting innovations, which assist our customers in achieving their sustainability and fuel efficiency goals."
Dana plans to acquire USM’s Warren, Mich., assets in exchange for 100 million in cash. The acquisition is aimed at increasing Dana’s revenue from passenger and commercial vehicle manufacturers and improve the company’s supply chain. It will also provide Dana with new product and process technologies for lightweighting.
Dana will also acquire USM’s proprietary tube-manufacturing processes and intellectual property for lightweight thin-wall axle tubes and hollow axle shafts.
“This acquisition will also expand Dana's substantial manufacturing footprint in the U.S. and advance our strategy for developing, designing, and manufacturing products in close proximity to our customers," said Bob Pyle, president of Dana Light Vehicle Driveline Technologies.