Dana Corporation has signed a letter of intent with DESC under which Dana will acquire full ownership of five manufacturing operations in
Under terms of the letter, Dana and DESC will dissolve their existing joint venture partnership, Spicer, with Dana assuming 100 percent ownership of operations that manufacture and assemble axles and driveshafts, as well as forging and foundry operations in which Dana holds an indirect 49 percent interest.
DESC, in turn, will assume full ownership of the transmission and aftermarket gasket operations in which it currently holds a 51 percent interest.
The transactions, which are expected to be completed in the first quarter of 2006, are subject to the negotiation and execution of a definitive agreement, approval by Dana’s Board of Directors, and customary regulatory approvals.
“These transactions will provide Dana with a strategic opportunity to strengthen our core axle and driveshaft businesses with vertically integrated and technologically advanced operations in a key geographic location,” commented Dana Chairman and CEO Mike Burns.