Dana (NYSE:E) announced on Wednesday that it will sell its European hydraulics business to HPI Group, as part of an ongoing assessment of its business and product portfolio.
The transaction, which is expected to be completed in the first half of 2024, involves operations in Italy, France and Germany which produces industrial components, including hydraulic motors, pumps, valves and control units.
The company generated approximately $90 million in sales to external customers in 2023.
Under the terms of the agreement, Dana will enter into a supply agreement under which the recently combined hydraulic businesses will continue to supply components to Dana.
“The sale of our European hydraulic manufacturing facilities allows us to focus on industrial system sales while having access to a broader portfolio through a supply agreement,” said Jeroen Decleer, senior vice president and president of Dana Off-Highway Drive and Motion Systems.