Dana Corporation today announced that the company and its subsidiary, Dana Canada Corporation, have completed the sale of their trailer axle manufacturing assets to Hendrickson USA, L.L.C., a subsidiary of The Boler Company, and its affiliates.
The U.S. and Canadian assets, which include trailer axle production equipment, inventory, and related assets at facilities in Lugoff, S.C., and Barrie, Ontario, Canada, were sold for a combined U.S. $31 million, subject to inventory adjustments at closing.
Additionally, a Chinese affiliate of Hendrickson has established a U.S. $2 million escrow for the purchase of certain trailer axle production equipment, inventory and related assets from Dana's Chinese subsidiary Dana (Wuxi) Technology Co. Ltd. Dana expects that the sale of the Wuxi assets will close in the first quarter of 2007.
Dana Heavy Vehicle Products President Nick Stanage said, “The sale of the trailer axle assets enables Dana's Commercial Vehicle group to concentrate its resources on its core products and competencies - drive and steer axles, driveshafts, brakes and tire inflation systems for commercial vehicles.”
In conjunction with these transactions, Bendix Spicer Commercial Vehicle Foundation Brake LLC, a joint venture in which Dana has an interest, has entered into an agreement to supply certain of Hendrickson’s requirements for Bendix brake products and systems through 2013.