Dana Signs Letter of Intent to Acquire the Piston Ring and Cylinder Liner Operations of SPX Corporation

Aug 29, 1996

    TOLEDO, Ohio, Aug. 29 /PRNewswire/ -- Dana Corporation (NYSE: DCN) has
signed a letter of intent to acquire the worldwide piston ring and cylinder
liner business of SPX Corporation (NYSE: SPW) for $235 million.
    The letter of intent covers the Sealed Power Division, Sealed Power
Europe, and ownership in various joint ventures in Mexico and the United
States.  Sealed Power Division operates 13 manufacturing facilities in the
United States and Europe, and has 3 affiliated manufacturing facilities in
    Completion of the acquisition is contingent upon a due diligence review,
the approval of appropriate regulatory agencies, and the approval of the
boards of directors of Dana and SPX.
    "This is an important strategic transaction for our engine parts group,"
said Dana Chairman Southwood J. Morcott.  "It will permit significant
manufacturing rationalization that will make us a more efficient and desirable
supplier, as well as a more effective competitor.  It will also bring
important international customer relationships to Dana and permit us to
compete more effectively on a global basis in engine hard parts for OE and
aftermarket applications."
    Since 1993, Morcott said, Dana has completed 24 acquisitions or joint
ventures.  Twenty of them involved operations outside the United States,
supporting the company's strategic goal of obtaining 50 percent of its sales
from outside the U.S.
    "The largest share of growth in world vehicle production over the next
20 years will occur outside North America," he explained.  "At Dana, we're
excited by the global opportunities.  That's why our acquisitions and joint
ventures have included 18 countries on five continents in the last three
    "Bringing together complementary Dana and SPX engine products will help to
create a core business with significant marketing synergies allowing Dana to
better serve global customers.  This strategic acquisition will also provide
an exciting opportunity for improved service and efficiency in the
aftermarket," said Hugo Ferreira, Dana group vice president of Engine Parts.
    SPX Corporation manufactures and markets specialty service tools and
components for the global motor vehicle industry and its related aftermarkets.
    Dana Corporation is a global leader in the engineering, manufacturing and
distribution of products and systems for the vehicular, industrial and mobile
off-highway markets.  Founded in 1904 and based in Toledo, Ohio, Dana operates
facilities in 29 countries with more than 45,000 people.  Its 1995 sales were
$7.6 billion.  Named in 1995 by Financial World magazine as one of the "Best
100 Growth Companies," Dana is noted for its style of management and its
commitment to innovation.  It has 37 product research and development centers
worldwide.  Dana also owns Dana Credit Corporation, a leading provider of
lease financing services.  The internet address for Dana's home page is

SOURCE  Dana Corporation

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