Dana Announces Termination of Agreement to Acquire Portion of Light-Vehicle Thermal Business from Modine Manufacturing Company

Rhea-AI Summary

Dana Incorporated (NYSE: DAN) has mutually agreed with Modine Manufacturing Company (NYSE: MOD) to terminate their acquisition of a portion of Modine's automotive thermal-management business. The deal, valued at one dollar, involved the assumption of specific financial liabilities. Both companies had been engaged in a lengthy regulatory review in Germany but decided it was no longer in their best interests to proceed. This decision marks a significant shift in Dana's strategic plans in the thermal management sector.

Positive

• None.

Negative

• Termination of acquisition could limit Dana's market expansion in the thermal management sector.
• Absence of strategic collaboration may hinder potential synergies and cost efficiencies.

MAUMEE, Ohio, Oct. 25, 2021 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) announced today a mutual agreement with Modine Manufacturing Company (NYSE: MOD) to terminate Dana's agreement to acquire a portion of Modine's automotive thermal-management business for one dollar with the assumption of certain financial liabilities.  Both companies had been actively engaged in the regulatory review process in Germany for many months and have decided that it is no longer in the best interest of either party to pursue the transaction further.

About Dana Incorporated
Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.

Based in Maumee, Ohio, USA, the company reported sales of $7.1 billion in 2020 with 38,000 associates in 33 countries across six continents.  Founded in 1904, Dana was named one of "America's Most Responsible Companies 2021" by Newsweek for its emphasis on sustainability and social responsibility. The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer, including "World's Best Employer" from Forbes magazine. Learn more at dana.com.

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SOURCE Dana Incorporated

FAQ

Why did Dana terminate its acquisition of Modine's business?

Dana and Modine mutually agreed to terminate the acquisition due to regulatory hurdles and the conclusion that proceeding was not in their best interests.

What was the value of the acquisition deal between Dana and Modine?

The acquisition deal was valued at one dollar, with Dana assuming certain financial liabilities.

How does the termination of the acquisition impact Dana's business strategy?

The termination may limit Dana's market expansion opportunities and potential synergies previously anticipated from the acquisition.

When was the acquisition agreement between Dana and Modine terminated?

The acquisition agreement was terminated on October 25, 2021.

What is Dana's next move after terminating the acquisition?

The press release did not specify Dana's next steps following the termination of the acquisition.