Dana Corporation (NYSE) announced Monday (10/07/00) that it has completed the purchase the automotive axle manufacturing and stamping operations of Invensys plc, a London-based electronics and engineering company. The transaction was announced in February.

  • (Photo: www.newscom.com/cgi-bin/prnh/19990903/DANA )

  • Sales for the operations were approximately $130 million in 1999. The acquisition includes facilities in Australia and South Africa that employ approximately 1,400 people.

    "The business supports our global growth strategy in the light-vehicle market by creating more opportunities for Dana in passenger-car axle applications," said Dana Chairman and CEO Joe Magliochetti. "This is precisely the type of strategic, bolt-on acquisition that will enhance shareholder value."

    Bill Carroll, president of Dana's Automotive Systems Group, said, "This business will fit very nicely into our operations and adds to the strength of our independent axle offering as well as our systems integration capabilities. We are very pleased to be adding some excellent process technology, quality operations, and outstanding people to our automotive group.

    "In addition, we believe that this acquisition enhances our ability to serve our OE customers in our role as a provider of engineering solutions and a true integration partner. We have had some exciting developments in the past few months -- especially in the Asia-Pacific region -- and this transaction will build on those," he said.

    Dana announced in December 1999 that it was selected to design and supply independent, rear-suspension drive modules for a future Ford vehicle to be built in Australia. Production is expected to exceed 100,000 units annually.

    Dana also supplies General Motors Corporation's subsidiary in Australia, Holden Ltd., with 200,000 front corner modules and 100,000 rear drive modules annually for the Holden Commodore passenger car.

    This acquisition is consistent with Dana's Five-Point Plan, which is a tactical link to the company's overall strategic plan. The Five-Point Plan provides elements for continued growth and increased profitability.

    The plan includes the following five tactics:

  • Grow while focusing on returns and maintaining financial discipline;

  • Seek strategic, bolt-on acquisitions at reasonable valuations;

  • Divest non-strategic and non-performing operations;

  • Repurchase stock as the company generates cash; and

  • Complete integration efforts and realize synergy savings.

  • Invensys plc is a global electronics and engineering company created by the merger of BTR plc and Siebe plc. With its head office in London, England, and more than 100,000 employees, it operates globally through four divisions -- Intelligent Automation, Industrial Drive Systems, Power Systems, and Controls.

    Dana Corporation is one of the world's largest independent suppliers to vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 320 major facilities in 32 countries and employs more than 82,000 people. The company reported sales of $13.2 billion in 1999. Dana's Internet address is www.dana.com .