Dana Holding Corp. announced that it has signed a definitive agreement with Axles India Ltd. (AIL) to acquire select assets of AIL’s commercial truck axle business. Under terms of the agreement, Dana will assume full ownership of AIL’s 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 also will 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, including Ashok Leyland and Mahindra & Mahindra. “This agreement further extends our capabilities and operations in another rapidly growing market,” says Mark Wallace, president of Dana’s Heavy Vehicle Products Group. “With the compound annual growth rate of India’s commercial vehicle market at 8 percent, we have high expectations for this investment.”
Closing of the transaction, expected to be completed in the second quarter of this year, is subject to government regulatory approvals and customary closing conditions. Dana says its investment of $13 million in this transaction is expected to generate about $50 million in annual revenue. The company broke ground in December 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.
