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.


SOURCE Dana Corporation

Web Site: http://www.dana.com

Company News On Call: Company News On-Call:
http://www.prnewswire.com/comp/226839.html or fax, 800-758-5804,
ext. 226839


print Print   email Email      rss RSS