|TOLEDO, Ohio - Dana Corporation announced it has completed
the sale of its worldwide Gresen Hydraulic operations to the Parker Hannifin Corporation a
Cleveland-based manufacturer of motion and control technologies. Terms of the sale were
Gresen manufactures a wide range of hydraulic pumps, motors, cylinders,
control valves, filters, and electronic controls for on- and off-highway vehicles. The
business had sales of approximately $128 million in 1999 and employs nearly 1,000 people
at facilities in Greenville, S.C.; Minneapolis; Sarasota, Fla.; and Cachoeirinha, R.S.,
"This divestiture reinforces Dana's on-going commitment to increase shareholder
value by further focusing on our core products," said Joe Magliochetti, Dana
president and CEO. "This move enables us to better position Dana strategically for
the opportunities and challenges ahead. It also allows us to proceed more aggressively
with our share repurchase program."
Southwood J. Morcott, Dana's chairman said, "Gresen is a solid business, with
great products and people. This business fits well with Parker Hannifin and gives our
people more opportunities for growth with a company where they will be core. This
transaction also allows Dana to focus on growing its core businesses."
The sale is consistent with Dana's previously announced Five-Point Plan, which is a
tactical link to the company's overall strategic plan. The Five-Point Plan provides
elements for continued growth and increased profitability.
The plan includes the following five tactics:
- Grow while focusing on returns and maintaining financial discipline;
- Seek strategic, bolt-on acquisitions at reasonable valuations;
- Divest non-strategic and non-performing operations;
- Repurchase stock as the company generates cash; and
- Complete integration efforts and realize synergy savings.
(Feb. 3, 2000)