G
Guest
·Not sure what this means for the current situation with Dana supplying ACDelco parts, or for Raybestos brakes. Maybe nothing--transparent to the counter customer, or???
Dana to Pocket $1.1B in Sale of Aftermarket Business to Cypress Group
Situation
1. Dana Corp will sell its Automotive Aftermarket Group (AAG) for $1.1B
2. Buyer is Cypress Group LLC, a NY-based private equity group
3. Sale includes 52 facilities w/ 13K employees worldwide
4. Aftermarket group makes brakes, filters; had sales of $2B in 2003
Significant Points
1. 2 former execs of Echlin, which merged w/ Dana in 1998, will serve as directors
2. Sale will reduce debt, fund pensions and put cash in Dana's core business
3. Cypress Group has invested in other auto businesses, including Lear
4. More buyout firms looking at auto businesses; fierce bidding war for Dana unit reported
5. Dana's stock was $55 when it merged w/ Echlin; closed at $18.42 when sale announced
6. Dana was object of unsuccessful hostile takeover by ArvinMeritor
Web Source
http://www.automotivedigest.com/view_art.asp?articlesID=12964
http://www.aftermarketbusiness.com/aftermarketbusiness/article/articleDetail.jsp?id=103473
http://www.dana.com
http://online.wsj.com/article/0,,SB108933863330959490,00.html
Dana to Pocket $1.1B in Sale of Aftermarket Business to Cypress Group
Situation
1. Dana Corp will sell its Automotive Aftermarket Group (AAG) for $1.1B
2. Buyer is Cypress Group LLC, a NY-based private equity group
3. Sale includes 52 facilities w/ 13K employees worldwide
4. Aftermarket group makes brakes, filters; had sales of $2B in 2003
Significant Points
1. 2 former execs of Echlin, which merged w/ Dana in 1998, will serve as directors
2. Sale will reduce debt, fund pensions and put cash in Dana's core business
3. Cypress Group has invested in other auto businesses, including Lear
4. More buyout firms looking at auto businesses; fierce bidding war for Dana unit reported
5. Dana's stock was $55 when it merged w/ Echlin; closed at $18.42 when sale announced
6. Dana was object of unsuccessful hostile takeover by ArvinMeritor
Web Source
http://www.automotivedigest.com/view_art.asp?articlesID=12964
http://www.aftermarketbusiness.com/aftermarketbusiness/article/articleDetail.jsp?id=103473
http://www.dana.com
http://online.wsj.com/article/0,,SB108933863330959490,00.html