Dana Corporation announced July 7 that it and Desc S.A. de C.V. have completed the dissolution of their Mexican joint venture. The closing of this transaction provides Dana with full ownership of several core operations based in Mexico, which will operate under Dana Holdings Mexico, S. de R.L. de C.V., a new Dana subsidiary.
Dana and Desc dissolved their joint venture, Spicer S.A. de C.V., with Dana assuming 100 percent ownership of operations that manufacture and assemble axles, driveshafts, gears, forgings and castings in which Dana previously held an indirect 49 percent interest. Desc, in turn, has assumed full ownership of the transmission and aftermarket gasket operations in which it previously held a 51 percent interest. Along with exchanging its minority interest in the joint venture, Dana also made a cash payment of $19.5 million (USD) to Desc.
"Taking full ownership of these core operations further solidifies our competitive profile," said Dana chairman and CEO Mike Burns. "In particular, Dana expects to benefit from the addition of technologically advanced operations supporting our core axle and driveshaft businesses, as well as the manufacturing cost efficiencies that come with expanding our global presence in this key competitive location."
With the completed transaction, Dana has acquired full ownership of five manufacturing operations, which had combined sales - both to Dana and to third parties - of $296 million (USD) in 2005.
The facilities, Autometales, S.A. de C.V.; and Ejes Tractivos, S.A. de C.V. in Mexico City, and Cardanes, S.A. de C.V.; Engranes Conicos, S.A. de C.V.; and Forjas Spicer, S.A. de C.V. in Queretaro, produce light vehicle axle and driveshafts and a variety of related components.
As part of the transaction, Desc has assumed full ownership of Transmisiones y Equipos Mecanicos, S.A. de C.V. (Tremec) and Transmisiones TSP, S.A. de C.V. (TSP) transmissions, located in
