Dana Sells Automotive Aftermarket Business

Motor,  Aug 2004  by Nash, Tom

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Dana Corp. has signed an agreement to sell its automotive aftermarket business to The Cypress Group for approximately $1.1 billion in cash. The transaction, which is expected to close in the third quarter of 2004, is subject to the purchaser's receipt of financing from committed sources and other conditions, including the receipt of regulatory approvals.

Dana Chairman and CEO Michael Burns said proceeds from the sale will be used to reinvest in the company's core businesses and to contribute to the company's pension plans and further reduction of Dana's debt.

"The completed transaction will provide Dana with important strategic and financial flexibility, which will be used to further invigorate our core businesses and better serve our global original equipment customers," Burns stated. "Dana will be a more streamlined company that is better focused on delivering worldclass component and systems solutions to our customers in the automotive, commercial vehicle and off-highway markets."

The sale includes 52 facilities employing approximately 13,000 people worldwide. Combined annual sales for these operations totaled approximately $2 billion in 2003. The transaction also involves several premier replacement product brands and a variety of under-vehicle components. As previously announced, the business that Dana has agreed to sell does not include Dana's distribution and marketing operations for its engine products, such as piston rings, gaskets and engine bearings, which Dana will retain as part of its Automotive Systems Group.

Copyright Hearst Business Publishing Aug 2004
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