Dana Corporation has signed a definitive agreement to sell a significant portion of the Engine Management operations of its Automotive Aftermarket Group to Standard Motor Products, an automotive replacement parts manufacturer and distributor, for approximately $120 million.
In conjunction with the transaction, Dana recorded an after-tax charge of approximately $23 million in the fourth quarter of 2002.
The sale involves nine US operations employing approximately 1,900 people, with sales of approximately $288 million in 2002.
The primary products of these operations are electronic control modules, wire and cable, fuel injectors, oxygen sensors, and voltage regulators. The facilities also include an engine controls distribution centre.
‘With this transaction, we will continue our emphasis on core businesses and those technologies that are central to our growth strategy,’ said Dana Chairman and CEO Joe Magliochetti.
‘While not core to Dana, these Engine Management operations can better serve the customer when combined with the expertise of a company such as Standard Motor Products, which is more focused on this segment of the aftermarket,’ added Magliochetti.
The transaction is subject to customary regulatory approvals and buyer’s financing.