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Dana To Combine With Driveline Division Of GKN - Quick Facts

Dana Incorporated (DAN) announced it has signed definitive agreements to combine with the Driveline division of GKN plc (GKN.L) to create Dana plc. The total consideration is composed of $1.6 billion in cash proceeds to GKN plc, the assumption of approximately $1.0 billion of net pension liabilities, and 133 million new Dana plc shares issued to GKN's shareholders, valued at approximately $3.5 billion.

Dana shareholders will own approximately 52.75 percent of the company with GKN shareholders owning 47.25 percent. The combined company will be domiciled in the United Kingdom as Dana plc and will continue to trade on the NYSE under the ticker symbol, DAN. Effective as of the closing of the transaction, Wandell will serve as non-executive chairman and Kamsickas will be president, CEO, and a director of the new company.

With approximately 35,000 employees, GKN Driveline has operations in 23 countries and has 61 manufacturing locations, including one of the largest driveline businesses in China via its joint venture, Shanghai GKN Huayu Driveline Systems. In 2017, the business generated consolidated sales of approximately $6.2 billion.

Dana expects to deliver annual run-rate cost synergies of $235 million within three years. The transaction is expected to be accretive to Dana's adjusted EPS in 2019. Dana expects to complete the transaction in the second half of 2018.

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