Dana closes sale of European hose/tubing operations

Dana Corporation has closed the previously announced sale of its European fluid products hose and tubing operations to Orhan Holding A.S., receiving cash proceeds of $66.9 million, and expects to receive $18.1 million of cash proceeds upon closing the sale of the remainder of the hose and tubing business – in North America – to Orhan later in the third quarter.

Dana expects to record an after-tax gain of approximately $34 million in the third quarter of 2007 in connection with the completion of the entire divestiture.

The assets sold to Orhan thus far include:

• A facility in Birmingham, United Kingdom;
• Stock in three companies in Vitry, France; Dolny Kubin, Slovakia; and Barcelona, Spain;
• Interests in three joint ventures with Orhan, including one operation in France and two in Turkey; and
• Intellectual property relating to the global hose and tubing business.

The remaining fluid products hose and tubing assets are located in Archbold, Ohio; Paris, Tenn.; Rochester Hills, Mich.; and San Luis Potosi, Mexico.

The global fluid products hose and tubing business reported aggregate revenues of $266 million in 2006 and employs approximately 1,750 people. Its operations manufacture fuel lines; power-assisted steering products; heating, ventilation, and air conditioning (HVAC) under-body products; engine and transmission cooling lines; exhaust gas recirculation tubes; and airbag fill tubes.

Dana chairman and CEO Mike Burns said, "The divestiture of our fluid products hose and tubing business is an important step in implementing Dana's 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."