Friday, December 18, 2009

Dana Corp. selling plants to Mexican firm

The Dana Holding Corp. has agreed to sell its Structural Products arm to the largest vehicle frame and structure supply company in Mexico, according to a press release.  The Maumee, Ohio-company has agreed to part with 10 facilities in the United States, Argentina, Australia, Venezuela and Brazil, including its Owensboro plant, according to the release. The sale was agreed upon for $130 million payable at closing, plus an additional $5 million payable a year after closing and $15 million more subject to earn-out, the release said.

The buyer, Metalsa S.A. de C.V., has agreed to shoulder certain liabilities as part of the sale, which is subject to government regulatory approval and other conditions.
Metalsa, which was founded in 1956, has 3,600 employees with a presence in India, Japan and the United States, as well as Mexico.

Nick Brake, president and CEO of the Greater Owensboro Economic Development Corp., said the EDC has been aware of the upcoming sale and has been working with Metalsa as part of the transition. "We continue to be in regular contact with the company and don't anticipate any changes," Brake said.