• Divestiture is for an enterprise value of CHF 600 million, approximately equaling the cash proceeds expected for the sale at closing
• Transaction is expected to close in late 2018 or the first quarter of 2019
• Oerlikon delivers on strategy and strengthens investment capabilities
• Cash will be deployed for investments in surface solutions and advanced materials
Pfäffikon, Schwyz, Switzerland – July 30, 2018 – Oerlikon (SIX: OERL), a leading technology and engineering group, announced today that it has signed a definitive agreement to divest its Drive Systems Segment to Dana Incorporated (NYSE: DAN) for an enterprise value of CHF 600 million, which is approximately the same amount of cash proceeds expected from the sale. This transaction marks a strategic milestone for Oerlikon as the company can fully concentrate on growing its surface solutions and advanced materials businesses, while strengthening its Manmade Fibers Segment. The transaction is expected to close in late 2018 or the first quarter 2019, subject to customary approvals and closing conditions.
“We are convinced that the drive systems business will thrive under the new ownership of Dana as the business and market focus, as well as technologies of both companies are a good complementary fit. The transaction will create mutual benefit for both Dana and the Drive Systems Segment,” said Dr. Roland Fischer, CEO Oerlikon Group. “With this transaction, we delivered on our strategy and vision for the Drive Systems Segment and have strengthened Oerlikon’s investment capabilities to fund further growth of our surface solutions and advanced materials businesses.”
Dana is a world leader in highly engineered solutions for improving the efficiency, performance, and sustainability of powered vehicles and machinery. They support the passenger vehicle, commercial truck, and off-highway markets, as well as industrial and stationary equipment applications. A fortune 500 company, Dana employs more than 30 000 people in 33 countries on six continents and reported sales of USD 7.2 billion in 2017.
Process and guidance
The transaction is expected to close in late 2018 or the first quarter of 2019, subject to regulatory merger approvals in a number of countries and the standard closing conditions. As a result of today’s announcement, Oerlikon will report the Drive Systems Segment under “Discontinued Operations” as of the second quarter of 2018 and will restate the 2017 financial statements accordingly for comparison purposes. Oerlikon will provide preliminary restated 2017 Group figures and an updated guidance for the financial year 2018 (continuing operations) on August 7, 2018 with the publication of the Group’s results for the second quarter and half year 2018.
About Oerlikon Drive Systems Segment
Based on nearly 100 years of experience, Oerlikon Drive Systems is a global leader in providing high-performance gears, market-leading shifting solutions, power transfer units (PTUs), differentials and planetary drives, as well as innovative solutions for hybrids and e-drives. In 2017, The Drive Systems Segment generated CHF 730 million in revenues, CHF 78 million in EBITDA (EBITDA margin: 10.6 %), and employed over 5 100 employees worldwide. Leveraging the secular trends of increasing demand for smarter mobility, improved energy efficiency and higher product standards, the company has established a strong base of customers in the agriculture, automotive, transportation, construction and energy (oil & gas/mining) industries.
Oerlikon (SIX: OERL) engineers materials, equipment and surfaces and provides expert services to enable customers to have high-performance products and systems with extended lifespans. Drawing on its key technological competencies and strong financial foundation, the Group is sustaining mid-term growth by executing three strategic drivers: addressing attractive growth markets, securing structural growth, and expanding through targeted mergers and acquisitions. A leading global technology and engineering Group, Oerlikon operates its business in three Segments – Surface Solutions, Manmade Fibers and Drive Systems – and has a global footprint of around 15 000 employees at 186 locations in 37 countries. In 2017, Oerlikon generated CHF 2.8 billion in sales and invested CHF 107 million in R&D.