Dana To Sell Joint Ventures For $136 Million To Getrag

Dana Holding Corp. (DAN) said it will sell its equity in two joint ventures to Getrag Corp. for $136 million, a deal that will allow the auto-parts maker to improve its liquidity position and overall balance sheet.

The joint ventures, both with Getrag subsidiaries, are Getrag Corp. in the U.S., which produces rear-axle units, and Sweden-based Getrag All Wheel Drive, which produces all-wheel-drive systems. The deal is expected to close in September.

"The sale of our interests in these businesses represents a divesture of nonstrategic assets," said Dana President and Chief Executive 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."

Following the sale of Dana's interests in the joint ventures, Getrag will sell these assets to GKN PLC (GKN.LN).

Dana exited from bankruptcy in 2008 and suffered along with the rest of the auto sector the following year, but its sales improved last year as demand revived. In its latest quarterly results, Dana reported a slightly narrower loss as sales of off-highway and commercial-vehicle parts led broad growth across nearly all its segments.

Dana shares closed at $17.30 Wednesday and were inactive premarket. The stock has gained 50% over the past 12 months.

 
   -By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;  [e-mail]