US Court clears sale of Dana's fluid products businesses

Toledo, Ohio - Dana Corp. said on 6 June that it has received approval from the US Bankruptcy Court overseeing its Chapter 11 reorganisation to go forward with the sale of the two businesses that compose its Fluid Products unit.

Dana will sell its hose and tubing business for $85 million to Orhan Holding AS, a Turkish industrial firm and joint venture partner of Dana.

Orhan and certain of its affiliates will buy certain assets of the business and the stock of some Dana affiliates engaged in the business. Assets being sold include three plants in the US and one each in Mexico and the United Kingdom. Dana also will sell stock in three European companies and interests in three European joint ventures with Orhan.

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

Dana 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).

Competitive bidding procedures for the sale of the businesses ended on 4 June, and Dana expects to close both sales by the end of July.

From Rubber & Plastics News (A Crain publication)