Earlier this month, Dana signed a definitive agreement to purchase a portion of the thermal-management business of Modine Manufacturing Company's automotive segment. For Modine, the liquid-cooled portion of its automotive business represents approximately 70% of its automotive business revenue. The decision to sell is in line with its decision to exit the automotive business.

The transaction is expected to be completed in the first half of 2021 and will be consolidated within Dana's Power Technologies segment. The acquisition balances Dana’s current product portfolio by extending its offerings in chillers and water-charged air coolers, adding exhaust-gas recirculation, and expanding its manufacturing process capabilities.

Dana says the transaction brings numerous benefits to it, including:

- Adding approximately $300 million in revenue based on 2019 results, and is expected to contribute $30 million in adjusted EBITDA on a post-synergy basis;
- Increasing the scale of Dana's Power Technologies business by approximately 30 percent, balancing the product portfolio with expanded thermal content, and leveraging complementary manufacturing processes and supply chains;
- Accelerating the company's electrification strategy with electric-vehicle thermal technologies, a key source of market growth;
- Strengthening relationships with new and existing light-vehicle manufacturers; and
- Diversifying the global geographic footprint of Dana's Power Technologies operations in the United States, Europe, and Asia.

"Dana's in-house engineering and manufacturing of thermal-management technologies is an important differentiator, and this acquisition is synergistic to our current portfolio, making it a natural fit for our Power Technologies business," said James Kamsickas, Dana chairman and CEO. "In addition to strengthening relationships with core customers in Europe and Asia, it presents opportunities to leverage our scale to expand business with new mobility manufacturers and optimise the business to deliver significant value to our shareholders."

This acquisition includes eight major facilities with operations in China, Germany, Hungary, Italy, the Netherlands, and the United States. The business serves a global roster of original-equipment and new mobility vehicle manufacturers. 

"We are pleased to announce the sale of our automotive business to Dana in a mutually beneficial strategic transaction," said Modine Interim Chief Executive Officer, Michael B. (Mick) Lucareli. "This transaction accelerates Modine's transformation to become a diversified industrial company with higher operating margins, lower capital intensity and greater free cash flow generation. The enhanced operating profile resulting from this transaction is a critical component of our strategic objectives and will allow us to provide additional capital and resources to accelerate the growth of our commercial HVAC and data center businesses. We are pleased to have completed this phase of the process and are excited to take the next steps in our strategic growth plan."