Dana Corporation Receives Court Approval to Sell Non-Core Fluid Products Businesses
Jun 6, 2007
TOLEDO, Ohio, June 6 /PRNewswire-FirstCall/ -- Dana Corporation (Pink Sheets: DCNAQ) announced today that the United States Bankruptcy Court for the Southern District of New York, which has jurisdiction over Dana's Chapter 11 reorganization proceedings, approved today the sale of the two businesses that compose the Fluid Products business that the company announced for sale in late 2005.
Dana's fluid products hose and tubing business will be sold to Orhan Holding, A.S., a Turkish industrial firm and joint-venture partner of Dana, for a purchase price of $85 million, and the company's coupled products business will be sold to Coupled Products Acquisition LLC, a wholly owned subsidiary of Wanxiang (USA) Holdings Corporation, for a nominal price.
Competitive bidding procedures for the sale of these businesses concluded on June 4. Dana expects to close the sale of both businesses by the end of July 2007.
Fluid Products Hose & Tubing Transaction Overview
Orhan and certain of its affiliates will acquire certain assets of Dana's fluid products hose and tubing business and the stock of certain Dana affiliates engaged in the business. The assets to be sold are located in three plants in the United States and one each in Mexico and the United Kingdom. Dana will also sell its stock in three companies in France, Slovakia, and Spain and interests in three joint ventures with Orhan Holdings, which include one operation in France and two in Turkey. The operations being sold reported consolidated revenues of $266 million in 2006. The aggregate purchase price will be $85 million, subject to usual closing adjustments, and the buyers will assume certain liabilities of the business at closing.
The fluid products hose and tubing plants and/or assets proposed to be sold to Orhan are located in: Vitry, France; San Luis Potosi, Mexico; Dolny Kubin, Slovakia; Barcelona, Spain; Birmingham, U.K.; and Archbold, Ohio; Paris, Tenn.; and Rochester Hills, Mich., U.S.A. Collectively, the operations manufacture fuel lines; power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under body products; engine and transmission cooling lines; exhaust gas recirculation tubes; and airbag fill tubes. These operations employ approximately 1,750 people in seven countries.
Coupled Products Transaction Overview
The coupled products plants and/or assets proposed to be sold to Coupled Products Acquisition LLC, are located in: San Luis Potosi, Mexico; and Columbia City, Ind.; Pensacola, Fla.; Rochester Hills, Mich.; and Upper Sandusky and Wharton, Ohio, U.S.A. The coupled products assets to be sold in San Luis Potosi and Rochester Hills are different from the assets in these same locations that are part of the Fluid Products Hose and Tubing transaction.
Collectively, the operations manufacture power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under-engine products; and brake products. The operations employ approximately 2,130 people and reported consolidated revenues of approximately $200 million in 2006. The business is being sold for a nominal purchase price and the buyer will assume certain liabilities of the business at closing.
About Dana Corporation
Dana is a world leader in the supply of axles; driveshafts; and structural, sealing, and thermal management products; as well as genuine service parts. The company's customer base includes virtually every major vehicle and engine manufacturer in the global automotive, commercial vehicle, and off-highway markets, which collectively produce more than 65 million vehicles annually. Based in Toledo, Ohio, the company's continuing operations employ approximately 35,000 people in 28 countries and reported 2006 sales of $8.5 billion, with more than half of this revenue derived from outside the United States. For more information, please visit: http://www.dana.com/.
Dana and certain of its 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 Dana continues its reorganization under Chapter 11, investments in its securities are highly speculative. Although shares of Dana common stock continue to trade on the OTC 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 Dana common stock under such reorganization plan is uncertain and shares of Dana common stock may be cancelled without any compensation pursuant to such plan.
Statements in this release regarding the anticipated sale of Dana's fluid products hose and tubing and coupled products businesses constitute "forward- looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent Dana's expectations based on its current information and assumptions. Forward-looking statements are inherently subject to risks and uncertainties. Actual results could differ from those that are anticipated and there can be no assurance that these sales will be completed as contemplated. Dana does not undertake to update any forward-looking statements in this release.Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990903/DANA
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SOURCE: Dana Corporation
CONTACT: Chuck Hartlage of Dana Corporation, +1-419-535-4728, or
Web site: http://www.dana.com/
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