Dana Holding Corporation announces it has signed definitive agreements to sell its equity in two joint ventures to Getrag. These transactions are part of a larger transaction between Getrag and GKN plc. Immediately following the sale of Dana interests in the joint ventures, Getrag will sell these and other assets to GKN.
The two joint ventures, both with Getrag subsidiaries, are:
- Getrag Corporation in the U.S., which produces rear axle units (also referred to as rear drive units, or RDUs) and power take-off units (also referred to as power transfer units, or PTUs) and timing gears for light vehicles. Dana holds a 49% interest in this venture; and
- Getrag All Wheel Drive, based in Sweden, produces all-wheel-drive systems and miscellaneous chassis components for light vehicles. Dana indirectly owns 25.2% of Getrag All Wheel Drive. Dana and Getrag (via Getrag Dana Holding GmbH) together own 60% of Getrag All Wheel Drive, a joint venture with Volvo.
Dana will receive U.S. $136 million in cash for the equity stakes in the two joint ventures, and will use the proceeds to further strengthen its liquidity position and overall balance sheet. The transaction is contingent upon receiving required regulatory approvals.
"The sale of our interests in these businesses represents a divesture of non-strategic assets," says Dana President and Chief Executive Officer Roger J. Wood. "Our ongoing focus will be on our core strategic products in on-highway and off-highway driveline technologies, including proprietary all-wheel-drive products, and power technologies."
The transaction is expected to close in September 2011.