Dana Completes Sale of Technology Leasing Assets to Heller Financial
Dec 2, 1998
TOLEDO, Ohio, Dec. 2 /PRNewswire/ -- Dana Commercial Credit Corporation (DCC), the leasing and financial services unit of Dana Corporation (NYSE: DCN), announced the completion of the sale of its technology leasing group portfolio to Chicago-based Heller Financial, Inc. (NYSE: HF). The portfolio consists of full-service small-ticket leasing and related services for the fast-growing micro-computer and office automation markets. It has operations in the United States, Canada, the United Kingdom, and continental Europe. The sale results in an after-tax gain of approximately $80 million. Additionally, as part of its restructuring and change in strategic direction, DCC will also take approximately $20 million of reserves for technology- leasing related and other discontinued businesses -- including its commuter aircraft and vehicle leasing programs. The net after-tax gain of approximately $60 million will be recognized in the fourth quarter of 1998. It also was announced that DCC will pay Dana a fourth-quarter dividend of $100 million as a result of the sale and normal dividends. This continues DCC's policy of paying dividends of capital in excess of what it needs to support its own growth. Edward Shultz, DCC's chairman and chief executive officer, said that these changes will allow DCC to focus on growing its other businesses and products. "Through redeployment of our resources, we will 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," he said. Richard J. Almeida, chairman and chief executive officer of Heller, said, "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 20 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 and systems used on more than 95 percent of the world's 670 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.