Dana's Acting President and Chief Operating Officer Bill Carroll said, "This move will enable us to leverage our historic strengths in product and process technology to the benefit of our OE customers - and ultimately, our shareholders."
Dana's Automotive Aftermarket Group produces and markets a wide range of replacement products, including Raybestos brakes, Wix and Filtron filters, and engine, transmission and other parts from brands including Quinton Hazell, Moprod, Victor Reinz, SIC, Krooklok, Perfect Circle, FTE, Commercial Ignition, Spicer and Borg Warner The group, which employs more than 15,000 people worldwide, reported sales of approximately $2.2 billion in 2002. No figures were provided by Dana for the value of its UK business or the number of UK employees.
Dana's acting president said that possible uses of proceeds from a sale include reinvestment in the company's core businesses; the further reduction of Dana's debt, which would likely accelerate the company's return to investment-grade status; and a contribution to the company's pension plans. Dana shareholders last week saw off an acquisition bid from ArvinMeritor.
Dana said it is targeting completion of the divestiture in 2004. Credit Suisse First Boston and Goldman, Sachs & Co. have been retained by Dana to assist in the sale process.