Dana Corporation announced today that it has completed the sale of its North American coupled products business to Coupled Products LLC, a wholly owned subsidiary of Wanxiang (USA) Holdings Corporation. Dana expects to record an after-tax loss of approximately $44 million in the third quarter of 2007 in connection with this transaction.
The sale substantially concludes the overall divestiture of Dana's fluid products business. Last month, the company closed the sale of its North American fluid products hose and tubing operations to Orhan Holding, A.S. Dana previously sold its European fluid products hose and tubing operations to Orhan in July, 2007.
"The completion of this divestiture marks another important step in Dana's efforts to concentrate our resources on the core products and competencies that are the foundation for our future growth," said Dana Chairman and CEO Mike Burns. "We wish the people of the coupled products business the very best as they move forward with Wanxiang."
The coupled products plants and/or assets involved in the Wanxiang transaction 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 operations manufacture power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under-engine products; and brake products. The operations employ approximately 2,050 people and reported consolidated revenues of approximately $200 million in 2006.