Dana Strengthens Partnership with Hydro Québec

31 July 2019

Team lead:

Dana announced on July 31, 2019 that Hydro Québec is broadening its partnership with Dana by co-investing in Dana's latest electrification acquisitions. Hydro Québec has purchased 45 percent of SME, which Dana acquired in January, and has increased its interest in PEPS to 45 percent for a total investment of approximately USD$65 million, including USD$53 million in cash paid at closing and a USD$12 million note due in 2024.  Dana continues to maintain a controlling financial interest in TM4 and SME for financial reporting purposes and will now consolidate the former PEPS operations.

Based in Arzignano, Italy, SME designs, engineers, and manufactures low-voltage AC induction and synchronous reluctance motors, inverters, and controls for a wide range of off-highway electric-vehicle applications, including material handling, agriculture, construction, and automated-guided vehicles.

The expanding partnership with Hydro Québec demonstrates Dana's commitment to continue investing and growing in the electric-mobility sector.

Gowling WLG advised Dana as Canadian counsel for this transaction with a team led by Naïm-Alexandre Antaki.

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