Dana selling European hydraulics business

Dana Incorporated, which designs and manufactures propulsion and energy management solutions for mobile vehicles and machines, announced it has entered into a definitive agreement to sell its European hydraulics business to HPI Group, a hydraulics business jointly held by Apogee Group and EiM Capital.

Dana acquired the power-transmission and fluid power business from Brevini Group, S.p.A., in early 2017, enabling Dana to expand its product portfolio and accelerate its hybridization and electrification initiatives, it stated. In 2023, the hydraulics business generated approximately $90 million in sales to external customers.

The decision to sell the hydraulics business is part of Dana’s ongoing evaluation of its operations and product portfolio, the company said. The sales transaction will include operations in Italy, France and Germany that produce industrial components, including hydraulic motors, pumps, valves and power packs.

Under the terms of the agreement, the companies will enter into a supply agreement in which the newly combined hydraulics business will continue to provide components to Dana.

“The sale of our European hydraulics production facilities allows us to focus on industrial system sales while having access to a broader portfolio through a supply agreement,” said Jeroen Decleer, senior vice president and president, Dana Off-Highway Drive and Motion Systems. “We look forward to continuing our relationship with HPI by selling and supplying hydraulic components through Dana’s global network of service and assembly centers around the globe.”

The transaction is expected to be completed in the first half of 2024, subject to regulatory approvals and customary closing conditions. Further details have yet to be announced.