MAUMEE, OH (WTOL) - Dana Incorporated announced Friday it has signed definitive agreements to combine with the Driveline division of GKN.
This combination will created Dana plc, a global leader in driveline systems.
Under the terms of the agreements, Dana shareholders will own about 52.75 percent of the company, while GKN shareholders will own 47.25 percent.
"This transformative and strategic transactions solidifies Dana as a world leader in vehicle drive systems and establishes a leading position in electric propulsion, which we see as the future of vehicle drivetrains," said James Kamsickas, president and CEO of Dana. "We have a long history of partnering with GKN, and the companies possess similar cultures and exceptionally talented people. Our highly complementary businesses share a deep understanding of our customers' long-term requirements. We look forward to welcoming GKN Driveline into the Dana family and to delivering value and growth to our shareholders."
The total consideration is composed of $1.6 billion in cash proceeds to GKN and 133 million new Dana shares issued to GKN's shareholders.
Visit Dana's website for more information..