|Toledo, Ohio - Dana Corporation announced that it has reached
a definitive agreement to purchase the axle manufacturing operations of Invensys plc, a
London-based electronics and engineering company, for $63 million.
Sales for the
operations were approximately $130 million in 1999. The acquisition includes facilities in
Australia and South Africa that employ approximately 1,400 people.
"This strategic, bolt-on acquisition will support one of our core products and
help further expand our axle opportunities in passenger car applications," said Dana
President and CEO Joe Magliochetti. "This is precisely the type of strategic
acquisition that will enhance shareholder value, and further demonstrates Dana's
commitment to our tactical Five-Point Plan."
Dana announced in December that it has been selected to supply independent,
rear-suspension drive modules for a future Ford vehicle to be built in Australia.
Production is expected to exceed 100,000 units annually. Dana also supplies General Motors
Corporation's subsidiary in Australia, Holden Ltd., with 200,000 front corner modules and
100,000 rear drive modules annually for the Holden Commodore.
The transaction is subject to the approval of appropriate regulatory agencies. This
acquisition 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.
(15 Feb 2000)