Dana Corp. Acquires Core Operations in Mexico

Dana Corp. announced that it and Desc S.A. de C.V. dissolved their Mexican joint venture, Spicer S.A. de C.V. The closing of the transaction provides Dana with full ownership of several Mexico-based core operations, which will operate under Dana Holdings Mexico, S. de R.L. de C.V. and a new Dana subsidiary. Under the terms of the dissolution agreement, Dana will assume 100% ownership of operations that manufacture and assemble axles, drive shafts, gears, forgings and castings in which Dana previously held a 49% interest. Desc has assumed full ownership of the transmission and aftermarket gasket operations in which it previously held a 51% interest. Along with exchanging its minority interest in the joint venture, Dana also made a cash payment of $19.5 million to Desc. With the completed transaction, Dana has acquired full ownership of five manufacturing operations, which had combined sales of $296 million in 2005. The facilities produce light vehicle axles, driveshafts and a variety of related components. Desc has assumed full ownership of Transmisiones y Equipos Mecanicos S.A> de C.V. (Tremec) and Transmisiones TSP S.A. de C.V. (TSP transmissions), located in Queretaro, Mexico; Transmission Technologies Corp. with operations in Knoxville, TN; and the T.F. Victor S.A. de C.V. aftermarket gasket operation in Mexico City, Mexico. Dana will sell aftermarket gaskets in Mexico through T.F. Victor and original equipment gaskets directly to engine and vehicle manufacturers.