Dana Corp. Sells Structural Products Unit

March 10, 2010
Metalsa pays $147 million; expands organization in the Americas, Australia, U.K.

Dana Holding Corp. has sold most of its global Structural Products business unit to Metalsa S.A., a Grupo Proeza subsidiary that manufactures structural components for light and commercial vehicle markets. The sale is valued at $147 million.

Dana manufactures automotive powertrain components and systems, including axles and driveshafts, and sealing and thermal-management products. It also produces various automotive service parts.

Metalsa produces chassis frames and body structural stampings and assemblies for passenger cars and light trucks. It also produces siderails and cross members for Class 5-8 commercial vehicles. Based in Monterrey, Mexico, it has operations in India, Japan, and North America.

Grupo Proeza is a privately held organization with five main business units: Automotive, Foundry, Juices and Fruits, Information Technology and Health Care.

"This is a significant step forward in our strategic growth," said Metalsa CEO Leopoldo Cedillo.

The nine operations being sold are in the U.S., Argentina, Australia, Brazil, Canada, and Dana’s interest in a British joint venture with GKN Auto Structures U.K.

A Dana Structural Products operation in Longview, Tex., will remain with the organization.

A separate sale of the Dana Structures plant in Venezuela is scheduled to close later this year, pending governmental approval there.

"Completing the sale of the Structural Products business enables Dana to sharpen our focus and resources more squarely on product development and growth in our businesses serving the light, medium, and heavy vehicle and off-highway markets," stated Dana President and CEO Jim Sweetnam.

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