TOLEDO, Ohio — Dana Corporation and two affiliates have entered into asset purchase agreements with Hendrickson USA and its affiliates for the sale of Danas trailer axle manufacturing business. Under terms of the agreements, the buyers will acquire certain assets located in Lugoff, S.C., Barrie, Ont., and Wuxi, China, which are used to manufacture heavy-duty trailer axles and suspensions for an aggregate price of approximately $38 million. The buyer will also assume limited liabilities related to the business.
Dana expects the bidding process to be completed and the sale to close in the fourth quarter of 2006. Dana Heavy Vehicle Products president Nick Stanage said the asset sale will support the companys efforts to focus more intently on its core commercial vehicle drivetrain product lines.
This divestiture will benefit our commercial vehicle group by concentrating its resources on our core products and competencies namely drive and steer axles, driveshafts, brakes and tire inflation systems for commercial vehicles, he said. We view this transaction as a strategic opportunity for both Dana and the buyer. This is a good business that has the opportunity to become even better by teaming with a company that considers trailer products a core pursuit and has the resources to further develop this groups capabilities to address this market segment.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News