("Dana To Sell Joint Ventures For $136 Million To Getrag,"
published at 7:01 a.m. EDT, misstated the corporate designator of
Getrag KG in the first paragraph. The corrected version
follows.)
Dana Holding Corp. (DAN) said it will sell its equity in two
joint ventures to Getrag KG for $136 million, a deal that will
allow the auto-parts maker to improve its liquidity position and
overall balance sheet.
The joint ventures, both with Getrag subsidiaries, are Getrag
Corp. in the U.S., which produces rear-axle units, and Sweden-based
Getrag All Wheel Drive, which produces all-wheel-drive systems. The
deal is expected to close in September.
"The sale of our interests in these businesses represents a
divesture of nonstrategic assets," said Dana President and Chief
Executive Roger J. Wood. "Our ongoing focus will be on our core
strategic products in on-highway and off-highway driveline
technologies, including proprietary all-wheel-drive products, and
power technologies."
Following the sale of Dana's interests in the joint ventures,
Getrag will sell these assets to GKN PLC (GKN.LN).
Dana exited from bankruptcy in 2008 and suffered along with the
rest of the auto sector the following year, but its sales improved
last year as demand revived. In its latest quarterly results, Dana
reported a slightly narrower loss as sales of off-highway and
commercial-vehicle parts led broad growth across nearly all its
segments.
Dana shares closed at $17.30 Wednesday and were inactive
premarket. The stock has gained 50% over the past 12 months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com