Toledo, Ohio - Dana Corp. and Desc SA de CV have completed the dissolution of their Mexican joint venture, Dana announced on 7 July.
The closing of the transaction provides Dana with full ownership of several core operations based in Mexico, which will operate under Dana Holdings Mexico, S. de R.L. de C.V., a new Dana subsidiary.
Dana and Desc dissolved their joint venture, Spicer S.A. de C.V., with Dana assuming 100-percent ownership of operations that manufacture and assemble axles, driveshafts, gears, forgings, and castings in which Dana previously held an indirect 49-percent interest.
Desc, in turn, has assumed full ownership of the transmission and aftermarket gasket operations in which it previously held a 51-percent interest. Along with exchanging its minority interest in the joint venture, Dana also made a cash payment of $19.5 million to Desc.
With the completed transaction, Dana has acquired full ownership of five manufacturing operations, which had combined sales - both to Dana and to third parties - of $296 million in 2005.
As part of the transaction, Desc has assumed full ownership of Transmisiones y Equipos Mecanicos S.A. de C.V. (Tremec) and Transmisiones TSP S.A. de C.V. (TSP) transmissions, located in Queretaro, Mexico; Transmission Technologies Corp., with operations in Knoxville, Tenn.; and the T.F. Victor S.A. de C.V. aftermarket gasket operation in Mexico City.
Dana will sell aftermarket gaskets in Mexico through T.F. Victor and original equipment gaskets directly to engine and vehicle manufacturers.
From Rubber & Plastics News (A Crain publication)