Dana Inc. has reached an agreement with Warren-based U.S. Manufacturing Corp. to purchase the company’s production operations and facility for $100 million in cash.
Dana (NYSE: DAN) expects the purchase of USM, which makes axle housing and driveline shafts, to boost business with carmakers by bringing production of fuel-efficiency technologies for lightweighting in-house, according to a news release.
Generating 60 percent of its sales, Dana is USM’s largest customer with 40 percent going to other vehicle manufacturers. Ford Motor Co. is Dana’s largest customer.
Maumee, Ohio-based Dana engineers axles, driveshafts and thermal products for lightweight, commercial and off-highway vehicles.
The transaction, expected to close in the first quarter, will include the 1.2 million-square-foot facility at 28201 Van Dyke Ave. and 800 employees.
“This represents our continued commitment to American manufacturing,” Dana spokesman Jeff Cole said. “In addition to this new plant, we have locations in Auburn Hills, St. Clair and Novi employing about 600 people. When we close on the deal, we will be employing about 1,400 in the Detroit area.”
Dana employees about 27,000 people in 34 countries. Cole could not disclose USM’s 2016 revenue or how much Dana plans to invest into the Warren facility. Last year, Dana recorded more than $5.8 billion in sales.