DANA acquires USM - Warren (Warren Manufacturing LLC; Warren, Michigan operations of U.S. Manufacturing Corporation)
The deal at a glance
DANA acquired USM - Warren (Warren Manufacturing LLC; Warren, Michigan operations of U.S. Manufacturing Corporation) for approximately $104 million paid at closing (including $25 million to settle prior trade payables), a transaction completed in March 2017, structured as all cash. The deal was a Asset purchase.
USM - Warren (Warren Manufacturing LLC; Warren, Michigan operations of U.S. Manufacturing Corporation) operates in Light Vehicle, is based in Warren, Michigan, United States, had revenue of about contributed $96 million of sales in 2017. Axle housing and driveline shaft manufacturing operations of U.S. Manufacturing Corporation's Warren, Michigan facility, contributed into a newly created entity (Warren Manufacturing LLC). The business manufactures axle housings, extruded tubular products and machined components and brings proprietary tube-manufacturing processes and intellectual property for lightweight thin-wall axle tubes and hollow axle shafts using a proprietary cold-extrusion process.
This acquisition will increase Dana's revenue from passenger and commercial vehicle manufacturers and will transition significant purchased content to vertically integrated supply. It will also provide Dana with new product and process technologies for lightweighting. Vertically integrating this content strengthens the supply chain for several of our most strategic customers.
Vertically integrated lightweight axle-tube supply and added cold-extrusion IP. Transitioned significant purchased content to vertically integrated supply; added lightweighting process technologies Light Vehicle operating segment
No advisory firms have been disclosed for this transaction.