As part of its continuing effort to focus on core businesses, Dana Corporation (NYSE: DCN) today announced that it is planning to sell its global Chelsea Power Take-Off operations.
Chelsea, which manufactures auxiliary power equipment in the United States and England, employs approximately 135 people and had sales of $57 million in 1999.
Dana Chairman and CEO Joe Magliochetti said, “Over the past three years, Dana has announced the divestiture of operations with annual sales of nearly $2 billion in the aggregate. In most cases, these were profitable businesses that just no longer fit within the strategic transformation of our company. As Dana grows, we will continue to prune our business and focus on core areas of growth.
Rick Clayton, president of Dana’s Heavy Truck Group, said, “Chelsea is a very strong operation with a solid brand name and an excellent record of performance. This decision, while difficult, is best for Dana and Chelsea in the long run, as it will allow Chelsea to grow with a new parent and Dana to focus on business where it has critical mass. The move is another example of our adherence to our Five-Point Plan.”
A tactical link to Dana’s overall strategic plan, the Five-Point Plan provides elements for continued growth and profitability. The plan includes the following 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 synergy savings.
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