Dana Corp. on Monday said it will sell most of its
aftermarket engine management business but keep operations that sell aftermarket water pumps and clutches.
The buyer will be Standard Motor Products Inc., a
replacement parts maker and distributor, of Long
Island City, N.Y.
The deal is worth about $120 million in cash, stock
and a note. Dana recorded an after-tax charge of about
$23 million in the fourth quarter of 2002 related to
the sale, which is set to be complete this year.
Dana said it decided to sell the business because
aftermarket electronic control modules are not part of
its core engine business. The move is part of the Toledo, Ohio, supplier's restructuring program.
The sale includes U.S. plants and warehouses, which
had 2002 sales of about $288 million. These facilities
-- located in Connecticut, Illinois, Indiana, Kansas,
New Jersey and Tennessee --have about 1,900 employees
The plants make electronic control modules, wire and
cable, fuel injectors, oxygen sensors, and voltage
regulators. They are sold to aftermarket parts stores,
including NAPA and Pep Boys.
Dana, a supplier of drivetrain and engine components,
ranks No. 6 on the Automotive News list of the largest
original equipment parts suppliers to North America.
Its 2001 North American original equipment sales to
automakers totaled $5.5 billion. Worldwide 2001
original equipment sales were $7.7 billion.