Dana Holding Corporation Agrees to Buy Commercial Vehicle Axle Business from Its Joint Venture, Axles India, Ltd.
Third Investment in 2011 Underscores Dana's Commitment to Expand Presence in Emerging Markets
MAUMEE, Ohio, April 25, 2011 - Dana Holding Corporation (NYSE: DAN) announced today that it has signed a definitive agreement with Axles India, Ltd. (AIL), to acquire select assets of AIL's commercial truck axle business.
Under terms of the agreement, Dana will assume full ownership of AIL's axle drive head and final axle-assembly operations. (The axle drive head includes the pinion, ring gear, differential lock, bearings, lube pump, and yoke inside the axle housing.) Dana will also assume responsibility for the marketing, sales, and engineering of these medium- and heavy-duty axles. AIL, a joint venture between Dana and two India-based companies, will continue to manufacture axle housings for Dana and other customers.
"This agreement further extends our capabilities and operations in another rapidly growing market," said Mark Wallace, president of Dana's Heavy Vehicle Products Group. "With the compound annual growth rate of India's commercial vehicle market at 8 percent, we have high expectations for this investment."
Added Dana's Managing Director of India, BD Singh, "Dana's recognized manufacturing and engineering leadership will be a key advantage in growing this business. Introducing lean manufacturing and applying Dana's product engineering experience will benefit all of our customers."
Key customers of this business are Ashok Leyland and Mahindra & Mahindra.
Closing of the transaction, expected to be completed in the second quarter of this year, is subject to government regulatory approvals and customary closing conditions. Dana's investment of $13 million in this transaction is expected to generate approximately $50 million in annual revenue.
Dana broke ground in December on a new $20 million technical center in Pune, India, which will support commercial vehicle customers, as well as automotive and off-highway vehicle manufacturers.
About Dana Holding Corporation
Dana is a world leader in the supply of driveline products (axles, driveshafts, and transmissions), power technologies (sealing and thermal-management products), and genuine service parts for light- and heavy-duty vehicle manufacturers. The company's customer base includes nearly every major vehicle manufacturer in the global automotive, commercial vehicle, and off-highway markets. Based in Maumee, Ohio, the company employs approximately 22,500 people in 26 countries and reported 2010 sales of $6.1 billion. For more information, please visit: www.dana.com.
About Axles India, Ltd.
Axles India is a joint venture of Wheels India Limited, Sundaram Finance Group, and Dana Holding Corporation. Started in 1983, Axles India supplies 180,000 pressed axle housings - from two manufacturing facilities - to medium- and heavy-duty commercial vehicle manufacturers annually.
SOURCE Dana Holding Corporation
CONTACT: Financial: Lillian Etzkorn, +1-419-887-5160; Media: Chuck Hartlage, +1-419-887-5123
Web Site: www.dana.com
