Dana Corporation Announces Agreement to Sell DCC Technology Leasing Assets to Heller Financial
Oct 13, 1998
TOLEDO, Ohio, Oct. 13 /PRNewswire/ -- Dana Corporation (NYSE: DCN) today announced that its leasing and financial services unit, Dana Commercial Credit Corporation (DCC), has agreed to sell its technology leasing group portfolio to Chicago-based Heller Financial, Inc. (NYSE: HF). Completion of the sale, which is subject to approval by U.S. and foreign agencies, is expected to occur during the fourth quarter of 1998. The sale is expected to result in an after-tax gain of approximately $80 million to Dana, which will be recognized upon closing of the transaction. The technology leasing portfolio being sold consists of full-service small- ticket leasing and related services to the fast-growing micro-computer and office automation markets. It has operations in the United States, Canada, the United Kingdom, and continental Europe. "I am genuinely excited for the people of the technology leasing group who will join Heller," said Edward Shultz, chairman and chief executive officer of DCC. "Although the growth potential in the technology leasing market segment is solid, DCC has decided to focus on growing our other businesses and products by selling these technology leasing assets to Heller, which has more aggressive growth expectations, complementary products, and global capabilities in this segment. "Through redeployment of our resources, we expect to be able to grow our other businesses - Capital Markets, Diversified Capital, Shannon Properties, and Asset Management - at an even faster rate than we have in the past," Shultz added. Added Richard J. Almeida, Heller's chairman and chief executive officer, "We're pleased to be adding to Heller's product and market expertise from an industry leader of the stature of Dana Commercial Credit, the only leasing company ever to be awarded a Malcolm Baldrige National Quality Award." Heller Financial, a worldwide commercial finance company with lending assets of nearly $13 billion, went public in May of 1998 in what was one of the largest IPOs over the past two years. Heller provides its middle-market and small business clients with equipment financing and leasing, factoring and working capital loans, collateral-based financing, cash flow financing, real estate financing, and small business lending. The company also operates through joint-venture and wholly owned companies located in 19 countries in Europe, Asia, Australia, and Latin America. These companies specialize in factoring, collateral-based financing, acquisition financing, leasing, vendor financing, and trade finance. One of seven Dana Strategic Business Units, DCC provides leasing and financing services to a broad range of business customers in selected markets. As one of North America's top leasing companies, DCC has assets owned and under management totaling $4.5 billion in original asset value. Dana Corporation is one of the world's largest independent suppliers to vehicular, off-highway, and industrial manufacturers and their related aftermarkets. Dana produces components used on more than 95 percent of the world's 650 million motor vehicles. Founded in 1904 and based in Toledo, Ohio, the company operates 270 major facilities in 33 countries and employs more than 79,000 people. The company had pro forma sales of $11.9 billion in 1997. Dana's Internet address is http://www.dana.com.