MAHLE announces successful acquisition of Dana Corporation`s engine hard parts business
Stuttgart/Germany, 9 March 2007—The MAHLE Group, headquartered in Stuttgart, Germany, announced today that it has completed the acquisition of Dana’s engine hard parts business.
The acquisition, which includes all worldwide units of Dana’s engine hard parts business including the Clevite® aftermarket organization, was successfully concluded as of March 9, 2007. In addition to the engine hard parts business, MAHLE acquires the exclusive distribution rights to Dana’s retained Victor Reinz® branded products in the independent aftermarket in the US and Canada. Other terms of this transaction include the ownership of three facilities in Argentina and Italy which will be transferred to MAHLE on a deferred basis to allow specific closing conditions to be completed in these locales.
The engine hard parts business of Dana Corp. consists of 39 locations in 10 countries with approximately 5,000 employees. This also includes 13 Aftermarket sales offices and distribution centers. The business had sales of approximately $670 million in 2005. The main products of the engine hard parts business are piston rings, engine bearings, cylinder liners and camshafts manufactured and sold under the Perfect Circle®, Clevite®, and Glacier Vandervell™ brands.
Prof. Dr. Heinz K. Junker, Chairman of MAHLE Group Management Board and CEO, stated, “We believe that Dana’s engine hard parts business is better positioned in the market as a part of the MAHLE organization. This acquisition is a strategic step to fill our product portfolio and to strengthen and balance our global presence. Now, we will start working to integrate the Dana locations into the existing MAHLE production network by appropriate restructuring measures, in order to facilitate all necessary synergy effects for the future.”
The MAHLE Group is a globally leading manufacturer of components and systems for the combustion engine and engine peripherals—from piston systems, cylinder components, valve train systems via air management systems up to liquid management systems. With currently approximately 37,500 employees in more than 80 production locations and in seven research and development centers, MAHLE expects in 2006 a sales of approximately 4.3 billion EUR and ranges, therefore, among the 30 largest suppliers of the automotive industry worldwide.