Dana Corporation 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 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.
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.
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.