TOLEDO, Ohio, June 6 /PRNewswire-FirstCall/ -- Dana Corporation (Pink
Sheets: DCNAQ) announced today that the United States Bankruptcy Court for
the Southern District of New York, which has jurisdiction over Dana's
Chapter 11 reorganization proceedings, approved today the sale of the two
businesses that compose the Fluid Products business that the company
announced for sale in late 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990903/DANA )
Dana's fluid products hose and tubing business will be sold to Orhan
Holding, A.S., a Turkish industrial firm and joint-venture partner of Dana,
for a purchase price of $85 million, and the company's coupled products
business will be sold to Coupled Products Acquisition LLC, a wholly owned
subsidiary of Wanxiang (USA) Holdings Corporation, for a nominal price.
Competitive bidding procedures for the sale of these businesses
concluded on June 4. Dana expects to close the sale of both businesses by
the end of July 2007.
Fluid Products Hose & Tubing Transaction Overview
Orhan and certain of its affiliates will acquire certain assets of
Dana's fluid products hose and tubing business and the stock of certain
Dana affiliates engaged in the business. The assets to be sold are located
in three plants in the United States and one each in Mexico and the United
Kingdom. Dana will also sell its stock in three companies in France,
Slovakia, and Spain and interests in three joint ventures with Orhan
Holdings, which include one operation in France and two in Turkey. The
operations being sold reported consolidated revenues of $266 million in
2006. The aggregate purchase price will be $85 million, subject to usual
closing adjustments, and the buyers will assume certain liabilities of the
business at closing.
The fluid products hose and tubing plants and/or assets proposed to be
sold to Orhan are located in: Vitry, France; San Luis Potosi, Mexico; Dolny
Kubin, Slovakia; Barcelona, Spain; Birmingham, U.K.; and Archbold, Ohio;
Paris, Tenn.; and Rochester Hills, Mich., U.S.A. Collectively, the
operations manufacture fuel lines; power-assisted steering products;
heating, ventilation, and air conditioning (HVAC) under body products;
engine and transmission cooling lines; exhaust gas recirculation tubes; and
airbag fill tubes. These operations employ approximately 1,750 people in
seven countries.
Coupled Products Transaction Overview
The coupled products plants and/or assets proposed to be sold to
Coupled Products Acquisition LLC, are located in: San Luis Potosi, Mexico;
and Columbia City, Ind.; Pensacola, Fla.; Rochester Hills, Mich.; and Upper
Sandusky and Wharton, Ohio, U.S.A. The coupled products assets to be sold
in San Luis Potosi and Rochester Hills are different from the assets in
these same locations that are part of the Fluid Products Hose and Tubing
transaction.
Collectively, the operations manufacture power-assisted steering
products; heating, ventilation, and air conditioning (HVAC) under-engine
products; and brake products. The operations employ approximately 2,130
people and reported consolidated revenues of approximately $200 million in
2006. The business is being sold for a nominal purchase price and the buyer
will assume certain liabilities of the business at closing.
About Dana Corporation
Dana is a world leader in the supply of axles; driveshafts; and
structural, sealing, and thermal management products; as well as genuine
service parts. The company's customer base includes virtually every major
vehicle and engine manufacturer in the global automotive, commercial
vehicle, and off-highway markets, which collectively produce more than 65
million vehicles annually. Based in Toledo, Ohio, the company's continuing
operations employ approximately 35,000 people in 28 countries and reported
2006 sales of $8.5 billion, with more than half of this revenue derived
from outside the United States. For more information, please visit:
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.
Forward-Looking Statements
Statements in this release regarding the anticipated sale of Dana's
fluid products hose and tubing and coupled products businesses constitute
"forward- looking" statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent Dana's
expectations based on its current information and assumptions.
Forward-looking statements are inherently subject to risks and
uncertainties. Actual results could differ from those that are anticipated
and there can be no assurance that these sales will be completed as
contemplated. Dana does not undertake to update any forward-looking
statements in this release.
SOURCE Dana Corporation
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Related links:
http://www.dana.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
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PRN Photo Desk, photodesk@prnewswire.com
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CONTACT:
Chuck Hartlage of Dana Corporation,
+1-419-535-4728, or chuck.hartlage@dana.com
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