Dana Corporation, one of a number of major US-based components suppliers operating under Chapter 11 bankruptcy protection has agreed to sell its “non-core” fluid products hose and tubing business to Orhan Holding, a Turkish industrial firm and joint venture partner.
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In a statement, Dana said Orhan and affiliates will acquire assets of the fluid products hose and tubing business and the stock of affiliates engaged in the business.
The assets to be sold are in three plants in the US and one each in Mexico and the UK.
Dana will also sell its stock in three companies in France, Slovakia, and Spain and interests in three joint ventures with Orhan Holdings, which include one operation in France and two in Turkey.
The operations being sold reported consolidated revenues of $US266m last year. The purchase price will be around $70m and the buyers will assume carious liabilities of the business when the deal closes.
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By GlobalDataDana said the deal is subject to bankruptcy court and government approvals and usual closing conditions.
As part of the standard US Chapter 11 bankruptcy process, Dana has filed a motion with the bankruptcy court seeking approval to invite competing bids for both the hose and tubing business and the remaining coupled products portion of the fluid products business before the sale is approved by the court.
Dana expects to complete the bidding process and to close the sale of the entire fluid products business in the second quarter of this year.
The fluid products hose and tubing plants and/or assets proposed to be sold to Orhan are located in: Vitry, France; San Luis Potosi, Mexico; Dolny Kubin, Slovakia; Barcelona, Spain; Birmingham, UK; and Archbold, Ohio; Paris, Tennessee; and Rochester Hills, Michigan, in the US.
These operations make fuel lines; power-assisted steering products; heating, ventilation, and air conditioning under-body products; engine and transmission cooling lines; exhaust gas recirculation tubes; and airbag fill tubes. They employ around 1,800 people in seven countries.
Dana announced its intention to sell its fluid products business in late 2005. The business is composed of the fluid products hose and tubing business involved in the proposed Orhan sale, as well as the company’s coupled products business, which includes six additional facilities.
As noted in its bankruptcy court approval request, Dana is also seeking a buyer for its coupled products assets.
