Dana Corporation Completes Acquisition of Core Operations in Mexico
Jul 7, 2006
TOLEDO, Ohio, July 7, 2006 /PRNewswire-FirstCall/ -- Dana Corporation (OTC: DCNAQ) (BULLETIN BOARD: DCNAQ) announced today that it and Desc S.A. de C.V. have completed the dissolution of their Mexican joint venture. The closing of this transaction provides Dana with full ownership of several core operations based in Mexico, which will operate under Dana Holdings Mexico, S. de R.L. de C.V., a new Dana subsidiary.
Dana and Desc dissolved their joint venture, Spicer S.A. de C.V., with Dana assuming 100-percent ownership of operations that manufacture and assemble axles, driveshafts, gears, forgings, and castings in which Dana previously held an indirect 49-percent interest. Desc, in turn, has assumed full ownership of the transmission and aftermarket gasket operations in which it previously held a 51-percent interest. Along with exchanging its minority interest in the joint venture, Dana also made a cash payment of $19.5 million (USD) to Desc.
"Taking full ownership of these core operations further solidifies our competitive profile," said Dana Chairman and CEO Mike Burns. "In particular, Dana expects to benefit from the addition of technologically advanced operations supporting our core axle and driveshaft businesses, as well as the manufacturing cost efficiencies that come with expanding our global presence in this key competitive location."
With the completed transaction, Dana has acquired full ownership of five manufacturing operations, which had combined sales -- both to Dana and to third parties -- of $296 million (USD) in 2005.
The facilities, Autometales, S.A. de C.V.; and Ejes Tractivos, S.A. de C.V. in Mexico City, and Cardanes, S.A. de C.V.; Engranes Conicos, S.A. de C.V.; and Forjas Spicer, S.A. de C.V. in Queretaro, produce light vehicle axle and driveshafts and a variety of related components.
As part of the transaction, Desc has assumed full ownership of Transmisiones y Equipos Mecanicos, S.A. de C.V. (Tremec) and Transmisiones TSP, S.A. de C.V. (TSP) transmissions, located in Queretaro, Mexico; Transmission Technologies Corporation (TTC) with operations in Knoxville, Tenn.; and the T.F. Victor, S.A. de C.V. aftermarket gasket operation in Mexico City, Mexico. Dana will sell aftermarket gaskets in Mexico through T.F. Victor and original equipment gaskets directly to engine and vehicle manufacturers.
About Dana Corporation
Dana is a leading supplier of drivetrain, chassis, structural, and engine technologies. Our people design and manufacture products for every major vehicle and engine producer in the world. Based in Toledo, Ohio, with operations throughout the world, we are focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Our continuing operations reported sales of $8.6 billion in 2005. Dana's Internet address is: http://www.dana.com/.
Dana and certain of our U.S. subsidiaries are operating under Chapter 11 of the U.S. Bankruptcy Code as debtors-in-possession. Information about the bankruptcy proceedings can be found at: http://www.dana.com/reorganization. While we continue our reorganization under Chapter 11, investments in our securities will be highly speculative. Although shares of our common stock continue to trade on the Over the Counter Bulletin Board (OTCBB) under the symbol "DCNAQ," the trading prices of the shares may have little or no relationship to the actual recovery, if any, by the holders under any eventual court-approved reorganization plan. The opportunity for any recovery by holders of our common stock under such reorganization plan is uncertain and shares of our common stock may be cancelled without any compensation pursuant to such plan.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, firstname.lastname@example.org
SOURCE: Dana Corporation
CONTACT: Todd M. Romain of Dana Corporation, +1-419-535-4727, or
Company News On-Call: http://www.prnewswire.com/comp/226839.html