MAUMEE, Ohio — Dana Holding Corp. has closed on the sale of the majority of its global Structural Products business to Monterrey, Mexico-based Metalsa S.A. de C.V., a manufacturer of structural components for the light and commercial vehicle markets.
This completes the sale of Dana’s structures operations in the U.S., Brazil, Canada, Australia and Argentina and a U.K. joint venture. The sale of Dana’s Structures facility in Venezuela is anticipated to conclude later this year. The Structural Products operations being sold to Metalsa encompass 10 facilities located in the United States, Argentina, Australia, Brazil, and Venezuela, as well as a joint venture in the United Kingdom. The operations and assets included in the sale generated consolidated revenues of approximately $590 million in 2009. Collectively, the operations employ approximately 2,800 people.
Dana retains and will continue to operate Structural Products operations at its Longview, Texas, facility.
Metalsa acquired the equity, tangible and intangible assets of the business from Dana for an aggregate purchase price of approximately $147 million, along with the buyer’s assumption of certain liabilities related to the business. The purchase price includes approximately $127 million payable at closing, subject to usual closing adjustments; $5 million payable on the first anniversary of closing; and up to $15 million subject to an earn-out. In addition, the parties have entered into ancillary agreements, including a transition services agreement, supply agreements and intellectual property license arrangements. In connection with the completion of this transaction, Dana recorded an after-tax charge of $153 million in the fourth quarter of 2009 for asset impairment and costs associated with the sale.
"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," said Dana President and CEO Jim Sweetnam. "We wish the talented people in the Structural Products operations the very best as they move forward with Metalsa. This is a good fit for Metalsa."
