Dana Incorporated is to purchase the assets of Sifco, a Brazilian producer of forged and machined components.
This includes manufacturing facilities.
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"This acquisition will enable Dana to enhance its vertically integrated supply chain, which will further improve the company's cost structure and customer satisfaction by leveraging Sifco's extensive experience and knowledge of sophisticated forged components," the supplier said in a statement.
"For nearly 70 years, Dana has operated in Brazil, which has long been one of the top 10 economies in the world," said CEO James Kamsickas. "This is an opportune time to invest in strategic and selective assets in Brazil that will further strengthen our position as one of the most trusted, top-tier suppliers to the mobility industry – thus positioning us for future profitable growth throughout the region."
Dana said the buy would expand its manufacturing in Brazil, helping vehicle manufacturer customers better accommodate local content requirements which reduce import and other region-specific costs. It would also further strengthen the supplier's position as a central source for products that use forged and machined components throughout the region.
"Dana has worked with Sifco for 40 years as a supplier of key components used in vehicle drivelines," the company said. "This acquisition will add the talent and capabilities needed to help us meet the requirements of our commercial vehicle customers and provide value for our light vehicle and off highway customers, as well."
Sifco has operated under judicial restructuring since 2014 and the sale is subject to conditions, including bankruptcy court and regulatory approvals. Completion is expected by the end of 2016.
Dana designs, manufactures, and distributes products in Brazil for virtually every major global producer of passenger vehicles, commercial trucks, and off-highway equipment.
