TOLEDO, Ohio (July 15)—Dana Corp. plans to sell its automotive aftermarket business to New York-based private equity firm Cypress Group for about $1.1 billion in cash.
Proceeds from the sale will be used for a combination of reinvestment in the company's core businesses, contribution to its pension plans and further reduction of debt, according to Michael Burns, Dana chairman and CEO.
The sale, expected to close in the third quarter, includes 52 facilities and 13,000 employees. Combined annual sales for the aftermarket operations totaled nearly $2 billion in 2003. The transaction does not include Dana's distribution and marketing operations for its engine products, such as piston rings, gaskets and engine bearings, which Dana will retain as part of its Automotive Systems Group.