Dana Corporation Announces Intention To Divest Aftermarket Group
December 03 2003 - 8:15AM
PR Newswire (US)
Dana Corporation Announces Intention To Divest Aftermarket Group
Company to Focus on Supporting Global Original Equipment Customers
TOLEDO, Ohio, Dec. 3 /PRNewswire-FirstCall/ -- In a move to sharpen
Dana Corporation's focus on the original equipment marketplace, its
Board of Directors announced today that it intends to divest the
company's Automotive Aftermarket Group. The Board stated that the
key benefit of this action is the enhanced strategic focus it will
bring to the company. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990903/DANA ) Commenting on
the announcement, Dana's Acting President and Chief Operating
Officer Bill Carroll said, "This move will enable us to leverage
our historic strengths in product and process technology to the
benefit of our OE customers - and ultimately, our shareholders."
Dana's Automotive Aftermarket Group produces and markets a broad
line of replacement products, including Raybestos(R) brakes, Wix(R)
filters, and a variety of under-vehicle components. The group,
which employs more than 15,000 people worldwide, reported sales of
approximately $2.2 billion in 2002. The proposed divestiture does
not involve Dana's Clevite distribution and marketing activities
based in Ann Arbor, Mich., or its related operations in Churubusco,
Ind.; Collierville, Tenn.; and Olive Branch, Miss. "As the largest
manufacturer of replacement parts and components in the aftermarket
sector, our Automotive Aftermarket Group features some of the
world's leading under-hood and under-vehicle brands," Mr. Carroll
added. "This business has been made even stronger by our
restructuring efforts over the past two years, which have included
a renewed focus on our customers and have enhanced our efficiency,
quality, and service. Ultimately, we believe the Aftermarket
Group's future opportunities will be optimized under new ownership
that is principally dedicated to the automotive aftermarket. "At
the same time, we believe Dana will be best served as we dedicate
our resources to providing innovative systems solutions to the
light vehicle, commercial vehicle, and off-highway markets," he
said. Mr. Carroll said that possible uses of proceeds from a sale
include reinvestment in the company's core businesses; the further
reduction of Dana's debt, which would likely accelerate the
company's return to investment-grade status; and a contribution to
the company's pension plans. "We believe this action will
significantly enhance Dana's strategic and financial flexibility,
while adding value for our shareholders," Mr. Carroll said. Dana
said it is targeting completion of the divestiture in 2004. Credit
Suisse First Boston and Goldman, Sachs & Co. have been retained
by Dana to assist in the sale process. Statements made in this
release indicating Dana management's intentions, beliefs,
expectations or predictions for the future are forward-looking
statements. These statements are only predictions and may differ
materially from actual or future events or results. Such
forward-looking statements are not guarantees of future performance
and may involve known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied. Such risks and uncertainties include
the success and timing of the contemplated divestiture of the
Automotive Aftermarket Group and other factors discussed from time
to time in Dana's filings with the Securities and Exchange
Commission. Dana is a global leader in the design, engineering, and
manufacture of value-added products and systems for automotive,
commercial, and off-highway vehicle manufacturers and their related
aftermarkets. The company employs approximately 60,000 people
worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates
hundreds of technology, manufacturing, and customer service
facilities in 30 countries. The company reported 2002 sales of $9.5
billion. http://www.newscom.com/cgi-bin/prnh/19990903/DANA
http://photoarchive.ap.org/ DATASOURCE: Dana Corporation CONTACT:
Michelle Hards of Dana, +1-419-535-4636, or email, Web site:
http://www.dana.com/ Company News On-Call:
http://www.prnewswire.com/comp/226839.html
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