Dana to Buy Michigan Driveline Operations

Toledo, Ohio-based Dana Inc. has signed a definitive agreement to purchase U.S. Manufacturing Corp.'s (USM) axle housing and driveline shaft manufacturing operations in Warren, Mich., for $100 million in cash. The deal is expected to be completed in the first quarter.

Founded in Detroit in 1964 by Joseph Simpson, USM also has a plant in Mexico that is not part of the Dana deal.

The acquisition will expand Dana’s U.S. manufacturing presence and give the supplier access to USM's tube manufacturing processes and intellectual property for lightweight, thin-wall axle tubes and hollow axle shafts. The products are constructed using a proprietary cold-extrusion process that creates varying wall sizes engineered to “significantly” reduce weight and improve strength, according to Dana.