Dana closes sale of European hose and tubing operations

Toledo, Ohio -- Dana Corp. has closed the sale of its European fluid products hose and tubing operations to Orhan Holding, valuing the global business at $85 million (€63 million).

Orhan paid $66.9 million for the company's non-US business and will pay a further $18.1 million in Q3 when it acquires its North American operations.

"The divestiture of our fluid products hose and tubing business is an important step in implementing Dana's reorganisation 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 and ceo Mike Burns, in a 5 July statement.

As part of the sale Orhan will get a facility in Birmingham, UK, stock in three companies in France, Slovakia and Spain as well as intellectual property relating to the global hose and tubing business.

The operations being sold reported consolidated sales last year of $266 million (€197 million).

Dana expects to record an after-tax gain of approximately $34 million in the third quarter of 2007 after the final sale has gone through.

The company previously announced that it also plans to sell its coupled products business to Coupled Products Acquisition llc, a wholly owned subsidiary of Wanxiang (USA) Holdings Corp. for a nominal price, with Wanxiang assuming certain liabilities.

That sale includes six plants and/or assets in the US and Mexico, collectively employing 2130 and posting 2006 sales of $200 million (€148 million).

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Press release from Dana