Toledo, OH-based truck component supplier Dana Corp. plans to sell its non-core engine hard parts business to Europe's Mahle GmbH, a global supplier to the automotive and engine industries.
The agreement provides for Mahle to acquire Dana's engine hard parts business for some $157 million, made up of stock and $98 million in cash. Dana, which expects to close the sale in the first quarter of 2007, said its engine hard parts business consists of 39 facilities that manufacture piston rings, engine bearings, cylinder liners, and camshafts. The business posted revenues of approximately $670 million in 2005.
The deal, however, must be approved by U.S. Bankruptcy Court, which has jurisdiction over Dana's Chapter 11 reorganization proceedings. "This divestiture is an important step in implementing our reorganization initiatives and sharpening our focus on our core axle, driveshaft, structural, sealing, and thermal products businesses for the automotive, commercial vehicle, and off-highway markets," said Dana chairman & CEO Mike Burns.