Dana is exploring the sale of its off-highway business, a move that could potentially reshape the company’s focus towards passenger vehicles, reported Bloomberg.
The segment in question, which caters to heavy-duty vehicles in various industries, is said to be in the early stages of a divestment process, sources familiar with the development told Bloomberg.
Go deeper with GlobalData
The off-highway business of Dana, known for supplying drive and motion systems to the agriculture, materials handling, mining, construction, and forestry sectors, has been a significant part of its operations.
In 2023, the unit reported revenues of approximately $3.2bn and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $465m.
The potential sale comes as Dana grapples with a 24% decline in shares this year, amidst challenging conditions in the automotive and industrial markets, including sluggish demand for electric vehicles.
With a current market value of $1.6bn and debt nearing $2.9bn, the divestment could provide a strategic refocus for the American company.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDana’s consideration of divesting its off-highway business follows a period of cost containment and efficiency drives, as stated by the company in July, in response to “softer” end-market demand.
The company has been under the scrutiny of activist investor Carl Icahn since 2022, who remains one of its largest shareholders.
Last month, Dana launched a certified remanufacturing programme for Dana Spicer Off-Highway drivetrain components.
This initiative not only supports environmental goals but also offers improved return on investment by extending the life cycle of equipment.
The Dana Certified Reman programme, which brings used components back to factory-new performance, is currently available across Europe.
Plans are in place to expand the programme to an additional 50 locations in North America, Europe, the Middle East, Africa, and China by the end of 2025.
