TOLEDO, Ohio, March 9 /PRNewswire-FirstCall/ -- Dana Corporation (OTC
Bulletin Board: DCNAQ) announced today that it has completed the sale of
its engine hard parts business to MAHLE GmbH for an aggregate cash payment
of approximately $97 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
The engine hard parts business consists of 39 facilities, which
manufacture piston rings, engine bearings, cylinder liners, and camshafts
under the Perfect Circle(R), Clevite(R), and Glacier Vandervell(R) brands.
With annual revenues of approximately $670 million in 2005, the engine hard
parts operations employ approximately 5,000 people in 10 countries.
Dana expects to record a non-cash, pre-tax charge of $30 million to $35
million in the first quarter of 2007 in connection with the completion of
this divestiture.
Other terms of the transaction include:
- MAHLE acquires the exclusive distribution rights to Dana's retained
Victor Reinz(R) branded products in the independent aftermarket in the
United States and Canada;
- Three facilities in Argentina and Italy will be transferred to MAHLE
upon completion of specific closing conditions in these locales; and
- MAHLE assumes certain liabilities related to the engine hard parts
business.
Dana Chairman and CEO Mike Burns said, "This divestiture is an
important step in implementing Dana's reorganization initiatives and
sharpening our focus on our core axle, driveshaft, structural, sealing, and
thermal products businesses for the automotive, commercial vehicle, and
off-highway markets."
About Dana Corporation
Dana is a leading supplier of drivetrain, chassis, structural, and
engine technologies. Dana people design and manufacture products for every
major vehicle and engine producer in the world. Based in Toledo, Ohio, with
operations throughout the world, Dana is focused on being an essential
partner to automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually. The company's
continuing operations reported sales of $8.6 billion in 2005. Dana's
Internet address is: http://www.dana.com/.
Dana and certain of its U.S. subsidiaries are operating under Chapter
11 of the U.S. Bankruptcy Code as debtors in possession. Information about
the bankruptcy proceedings can be found at:
http://www.dana.com/reorganization. While Dana continues its reorganization
under Chapter 11, investments in its securities are highly speculative.
Although shares of Dana common stock continue to trade on the OTC Bulletin
Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares
may have little or no relationship to the actual recovery, if any, by the
holders under any eventual court-approved reorganization plan. The
opportunity for any recovery by holders of Dana
common stock under such reorganization plan is uncertain and shares of
Dana common stock may be cancelled without any compensation pursuant to
such plan.
SOURCE Dana Corporation
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Related links:
http://www.dana.com
http://www.dana.com/reorganization
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
http://www.prnewswire.com/comp/226839.html /
CONTACT:
Chuck Hartlage of Dana Corporation,
+1-419-535-4728, or chuck.hartlage@dana.com
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