DANA acquires SIFCO S.A. (commercial vehicle steer axle & forged components businesses)

DANA acquired SIFCO S.A. (commercial vehicle steer axle & forged components businesses) for approximately $70 million ($10 million deferred), a transaction completed in December 2016, structured as all cash. The deal was a Asset purchase.

SIFCO S.A. (commercial vehicle steer axle & forged components businesses) operates in Commercial Vehicle, is based in Brazil, had revenue of about Dana had sales of $86 million in 2016 from business under the previous SIFCO supply agreement; the acquisition generated incremental sales of $44 million in 2017.. Strategic assets of the commercial vehicle steer axle systems and related forged components businesses of SIFCO S.A., a Brazilian entity that had operated under judicial restructuring since 2014. Dana acquired the assets through a Brazilian bankruptcy-court-supervised competitive auction, adding two manufacturing facilities and approximately 1,400 employees, free and clear of legacy liabilities.

The acquisition enables us to enhance our vertically integrated supply chain, which will further improve our cost structure and customer satisfaction by leveraging SIFCO's extensive experience and knowledge of sophisticated forged components. This acquisition enables us to better accommodate the local content requirements of our customers, which reduces their import and other region-specific costs.

Vertically integrated a key forged-component supplier and met local-content requirements in South America. Improved cost structure via vertical integration of forged and machined components Commercial Vehicle operating segment

Advisory firms were not disclosed for this transaction.