Dana Corp. announced 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 $157 million, including $98 million in cash and stock. The sale is expected to close during the first quarter of 2007.
Dana's engine hard parts business, which consists of 39 facilities that manufacture piston rings, engine bearings, cylinder liners and camshafts, posted revenues of approximately $670 million in 2005.
However, the deal 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.