Dana Corp. announced its signing of an agreement to sell its automotive aftermarket business to The Cypress Group for approximately $1.1 billion in cash. The transaction is expected to close in the third quarter, pending the purchaser’s receipt of financing and other customary conditions.
However, the transaction will not affect Dana’s commercial vehicle market, said Dana spokesperson Gary Corrigan, adding that the transaction impacts primarily its automotive division. “From our [commercial vehicle] customer’s point of view it will be a seamless transaction.”
The sale includes 52 facilities employing approximately 13,000 people worldwide. Combined annual sales for these operations totaled approximately $2 billion in 2003. The transaction also involves several premier replacement product brands and a variety of under-vehicle components. The transaction does not involve Dana’s distribution and marketing operations for its engine products.
“The completed transaction will provide Dana with important strategic and financial flexibility, which will be used to further invigorate our core businesses and better serve our original equipment customers,” said Dana chairman & CEO Michael Burns. “Dana will be a more streamlined company that is better focused on delivering world-class component and systems solutions to our customers in the automotive, commercial vehicle, and off-highway markets.”