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Dana, Eaton swap parts
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July 9, 1997: 11:33 a.m. ET
Auto parts makers will sell units to each other to focus on core businesses
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NEW YORK (CNNfn) - Dana Corp. announced Wednesday it will sell its vehicle clutch business to Eaton Corp. for $180 million. Eaton, in turn, will sell its axle and brake operations to Dana for $287 million.
The move is part of Dana's plan to concentrate on its core business of axles, driveshafts, automobile frames and other assorted engine products.
Toledo, Ohio-based Dana will acquire facilities in Kentucky, Ohio and Tennessee as well as Argentina, England, Mexico and Spain. Those operations employ approximately 3,400 people.
The addition will beef up Dana's core Spicer Axle Group, which is expected to achieve about $3 billion in sales this year.
For its part, Cleveland-based Eaton will acquire manufacturing and laboratory operations in Indiana, North Carolina and Oklahoma as well as various overseas facilities in England and Holland. About 670 people work at those plants.
Under an agreement, Dana will still be able to supply independent distributors with new and remanufactured clutches on a non-exclusive basis.
The acquisition is the latest in a series of deals made by Dana this year. Earlier, the company acquired Clark-Hurth Components and the cylinder-liner and piston-ring operations of SPX Corp. It has also sold off its European warehouse distribution facilities and its hydraulic-cylinder operations.
-- Randy Schultz
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