Dana Holding Corp. on Thursday, July 28, announced it has signed definitive agreements to sell its equity in two joint ventures to Getrag. Dana says these transactions, expected to close in September and contingent upon receiving required regulatory approvals, are part of a larger transaction between Getrag and GKN plc.
Dana says it will receive $136 million in cash for the equity stakes in the two joint ventures and will use the proceeds to further strengthen its liquidity position and overall balance sheet. Dana says that immediately following the sale of its interests in the joint ventures, Getrag will sell these and other assets to GKN.
The two joint ventures, both with Getrag subsidiaries, are:
• Getrag Corp. in the United States, which produces rear axle units (also referred to as rear drive units, or RDUs) and power take-off units (also referred to as power transfer units, or PTUs) and timing gears for light vehicles. Dana holds a 49 percent interest in this venture; and
• Getrag All Wheel Drive, based in Sweden, which produces all-wheel-drive systems and miscellaneous chassis components for light vehicles. Dana indirectly owns 25.2 percent of Getrag All Wheel Drive. Dana and Getrag (via Getrag Dana Holding GmbH) together own 60 percent of Getrag All Wheel Drive, a joint venture with Volvo.
“The sale of our interests in these businesses represents a divesture of nonstrategic assets,” says Roger Wood, president and chief executive officer of Maumee, Ohio-based Dana. “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.”