Dana Corp. said that it has completed the sale of its FTE brake
and clutch actuation systems operations to HgCapital, a European private
equity finance company. The transaction included FTE's five
manufacturing facilities in Germany, Mexico, and Brazil, as well as its
14 sales offices. The Ebern, Germany-based FTE operations employ
approximately 2,850 people.
Net cash proceeds for the transaction total approximately $150
million. Dana will record an after-tax gain of approximately $24 million
in the fourth quarter of 2002 related to the transaction.
Dana Chairman and CEO Joe Magliochetti said, "FTE is a
respected business with solid product and brand reputation. But in the
larger view, this move reinforces our desire to focus Dana's
energies on core businesses and technologies, which are more central to
our strategy of growth through innovation."
FTE's primary brake products include master cylinders, wheel
cylinders, brake boosters and hoses, and anti-lock brake modules and
systems. Its major clutch products include master cylinders, slave
cylinders, concentric slave cylinders, hoses and lines, pipe assemblies,
and servos.
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