Dana Corp and its subsidiary, Dana Canada Corp, have completed the sale of their trailer axle manufacturing assets to Hendrickson USA LLC, a subsidiary of The Boler Co, and its affiliates.
The United States and Canadian assets include trailer axle production equipment, inventory, and related assets at facilities in Lugoff SC and Barrie, Ontario, Canada. They were sold for a combined US $31 million, subject to inventory adjustments at closing.
Additionally, a Chinese affiliate of Hendrickson has established a US $2 million escrow for the purchase of certain trailer axle production equipment, inventory, and related assets from Dana's Chinese subsidiary Dana (Wuxi) Technology Co Ltd. Dana expects that the sale of the Wuxi assets will close in the first quarter of 2007.
In conjunction with these transactions, Bendix Spicer Commercial Vehicle Foundation Brake LLC, a joint venture in which Dana has an interest, has entered into an agreement to supply certain Hendrickson requirements for Bendix brake products and systems through 2013.