Dana Expands Global Off-Highway Business With Agreement To Acquire Clark-Hurth Components

Dec 20, 1996

    TOLEDO, OHIO, Dec. 20 /PRNewswire/ -- In the largest acquisition in its
92-year history, Dana Corporation (NYSE: DCN) today signed an agreement to
acquire the global business of Clark-Hurth Components, a unit of
Ingersoll-Rand Company and a worldwide manufacturer of off-highway vehicle
    The acquisition is contingent on customary conditions, including approval
of appropriate regulatory agencies.  Terms of the agreement were not released.
    "This acquisition will make Dana a leading supplier of off-highway
drivetrain components and systems," said Dana Chairman Southwood J. Morcott.
"It will bring  together broad manufacturing experience, superior engineering
expertise and global delivery capabilities.  We will combine the Clark-Hurth
operations with Dana's Spicer Off-Highway divisions to form an Off-Highway
Components Group.  The new group will offer a broad range of drivetrain
products for off-highway vehicles."
    The new Off-Highway Components Group will produce axles, brakes,
transaxles, and powershift transmissions for off-highway vehicles used in
agriculture, construction, forestry, leisure and outdoor power equipment,
mining and material handling.  With 12 plants in four countries, the group
will serve hundreds of off-highway equipment manufacturers in more than
30 countries.
    "The acquisition will strengthen our global presence." said Morcott.
"Two-thirds of Clark-Hurth sales are outside the U.S.  Clark-Hurth will bring
new customers, new products and new technologies to Dana.  It will also enable
us to offer modular systems to off-highway equipment manufacturers.  All of
these elements will support our plans for making Dana successful beyond the
year 2000."
    Clark-Hurth has manufacturing operations in Belgium, Italy and the United
States.  The company's 1995 sales were approximately $350 million.
    "Four of Clark-Hurth's manufacturing facilities and the majority of its
sales are in Europe," said Nick Cole, president of Dana's Structural
Components Group.  "By combining our off-highway operations in Italy, the
United Kingdom and the United States, this acquisition will provide Dana with
a strong base in Europe and North America, the world's largest off-highway
markets.  We will also be well positioned to participate in growing Asian and
South American markets.
    "The acquisition will also increase Dana's off-highway product technology
centers to six," Cole said.  "Each center specializes in a specific product
area.  For example, the Clark-Hurth engineering center in Brugge, Belgium,
concentrates on light-to-medium powershift transmissions, while Spicer
Off-Highway Axle's center in Italy focuses on medium-duty agricultural axles.
    "Clark-Hurth brings an important and diverse list of additional customers
to Dana," he added.  "I'm excited by the opportunities this presents, as we
pursue our strategic plan for the future."
    In addition to Brugge, Clark-Hurth has factories in Arco, Valsugana, and
Rovereto, Italy, and Statesville, N.C.  Spicer Off-Highway Axle has plants in
Plymouth, Minn.; Fredericktown, Ohio; Morganton, N.C.; Leeds, U.K., and
Atessa, Como and Vimercate, Italy.
    "Our organization's regional operations will continue to design, test and
manufacture new products for their regional customers," said Paula Schaff,
vice president and general manager of Spicer Off-Highway Axle,  "but our
ability to design global products for global applications will be enhanced.
This acquisition will bring together an advanced team in drivetrain technology
for off-highway vehicles."
    Dana Corporation is a global leader in the engineering, manufacture and
distribution of products and systems for the vehicular, industrial and off-
highway markets.  Founded in 1904 and based in Toledo, Ohio, Dana operates
facilities in 29 countries with 45,000 people.  Its 1995 sales were
$7.6 billion.  Dana is noted for its style of management and its commitment to
innovation.  It has more than 38 product research and development centers
worldwide.  Dana also owns Dana Credit Corporation, a leading provider of
lease financing services and a 1996 winner of the Malcolm Baldrige National
Quality Award.  Dana's home page is located at:  http://www.dana.com.

SOURCE  Dana Corporation

CONTACT: Gary Corrigan, Director-Corporate Communications, of Dana
Corporation, 419-535-4813