In a move to sharpen Dana Corporation’s focus on the original equipment marketplace, its board of directors announced yesterday that it intends to divest the company’s Automotive Aftermarket Group. The board stated that the key benefit of this action is the enhanced strategic focus it will bring to the company.
Dana’s Automotive Aftermarket Group produces and markets a broad line of replacement products, including Raybestos brakes, Wix filters, and a variety of under-vehicle components. The group, which employs more than 15,000 people worldwide, reported sales of approximately $2.2 billion in 2002.
The proposed divestiture does not involve Dana’s Clevite distribution and marketing activities based in Ann Arbor, or its related operations in Churubusco, Collierville and Olive Branch, all of which are in the USA.
’As the largest manufacturer of replacement parts and components in the aftermarket sector, our Automotive Aftermarket Group features some of the world’s leading under-hood and under-vehicle brands,’ said Dana’s Acting President and Chief Operating Officer Bill Carroll.
Mr Carroll 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 accelerate the company’s return to investment-grade status; and a contribution to the company’s pension plans.
Dana said it is targeting completion of the divestiture in 2004.