Dana will acquire certain AIL axle assets
May 10, 2011 12:36 PM
Dana Holding Corporation has signed a definitive agreement with Axles India Ltd (AIL), to acquire select assets of AILís commercial truck axle business.
Under terms of the agreement, Dana will assume full ownership of AILís axle drive head and final axle-assembly operations. (The axle drive head includes the pinion, ring gear, differential lock, bearings, lube pump, and yoke inside the axle housing.) Dana will also assume responsibility for the marketing, sales, and engineering of these medium- and heavy-duty axles. AIL, a joint venture between Dana and two India-based companies, will continue to manufacture axle housings for Dana and other customers.
Closing of the transaction, expected to be completed in the second quarter of 2011, is subject to government regulatory approvals and customary closing conditions. Danaís investment of $13 million in this transaction is expected to generate approximately $50 million in annual revenue.
Dana broke ground in December 2010 on a new $20 million technical center in Pune, India, which will support commercial vehicle customers as well as automotive and off-highway vehicle manufacturers.
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