Dana Corp announced that it and two affiliates have entered into asset purchase agreements with Hendrickson USA LLC, a subsidiary of The Boler Company, and its affiliates for the sale of Dana's trailer axle manufacturing business.
Under terms of the agreements, the buyers will acquire certain assets located in Lugoff SC; Barrie, Ontario, Canada; and Wuxi, China, which are used to manufacture heavy-duty trailer axles and suspensions for an aggregate price of approximately $38 million in cash.
Dana Heavy Vehicle Products President Nick Stanage said the asset sale will support the company's efforts to focus more intently on its core commercial vehicle drivetrain product lines. "This divestiture will benefit our Commercial Vehicle group by concentrating its resources on our core products and competencies--namely drive and steer axles, driveshafts, brakes and tire inflation systems for commercial vehicles," he said.
In conjunction with the asset purchase agreements, Bendix Spicer Foundation Brake LLC, a joint venture in which Dana has an interest, has agreed to continue to supply Bendix brake systems to Hendrickson.