Dana Announces Agreement To Sell Australian Truckline Parts Centres
Dec 21, 1999
TOLEDO, Ohio, Dec. 21 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today announced an agreement to sell its Australian Truckline Parts Centres business to International Trucks Australia Pty Limited, a subsidiary of Italian truck manufacturer Iveco SpA, for an undisclosed sum. Completion of the sale is expected to occur during the first quarter of 2000. With sales of $36 million (AU $55 million) in 1998, Truckline Parts Centres is Australia's largest independent specialist distributor of heavy- duty parts. The business consists of a nationwide company-owned and -operated network of 24 retail outlets across Australia, as well as 13 driveline repair and remanufacturing facilities. The operations employ 190 people. "This transaction reinforces Dana's on-going commitment to increase shareholder value by further focusing our operations through the divestiture of non-strategic businesses," said Joe Magliochetti, Dana president and CEO. "This is our fourth divestiture this year, demonstrating Dana's resolve to implement our Five-Point Plan." Rick Clayton, president of Dana's Heavy Truck Group, said, "We are very pleased with the agreement we have reached. The sale of this operation fits our strategic plan and allows us to concentrate on growing our core businesses in the region." Gerry Turek, managing director of Dana Australia, said, "Dana has a long and valued relationship with Iveco. I am pleased that our Truckline people will be with a company where they will have additional opportunities for growth and success." The sale is consistent with Dana's previously announced Five-Point Plan, which is a tactical link to the company's overall strategic plan. The Five- Point Plan provides elements for continued growth and increased profitability. The plan includes the following five tactics: * Grow while focusing on returns and maintaining financial discipline; * Seek strategic, bolt-on acquisitions at reasonable valuations; * Divest non-strategic and non-performing operations; * Repurchase stock as the company generates cash; and * Complete integration efforts and realize synergy savings. Dana Corporation is one of the world's largest independent suppliers to vehicle manufacturers and their related aftermarkets. Founded in 1904, and based in Toledo, Ohio, the company operates some 330 major facilities in 32 countries and employs more than 86,000 people. The company reported sales of $12.5 billion in 1998. Dana's Internet address is http://www.dana.com .