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Dana To Purchase Eaton's Global Axle & Brake Business

9 July 1997

Dana To Purchase Eaton's Global Axle & Brake Business

    TOLEDO, Ohio, July 9 -- In the largest acquisition in its
history, Dana Corporation announced today an agreement to purchase
the global axle and brake operations of Eaton Corporation for
$287 million.  Sales for this business unit will approximate $625 million in
1997.
    The transaction is subject to completion of due diligence and customary
approval of appropriate regulatory agencies.
    Dana also announced a unique marketing relationship whereby Eaton will
market a complete heavy-duty Class 8 Eaton-Spicer drivetrain system consisting
of Eaton(R) Fuller(R) transmissions, as well as clutches, axles, brakes, and
driveshafts.
    The facilities to be acquired by Dana encompass domestic manufacturing
operations in Glasgow, Ky.; Henderson, Ky.; Marion, Ohio; and Humboldt, Tenn.;
as well as facilities in Argentina, England, Mexico, and Spain.  Total
employment at the acquired facilities is approximately 3,400, with roughly
two-thirds in the U.S. and one-third in overseas operations.  In addition, the
transaction includes axle and brake research and development assets located in
Eaton's Galesburg, Mich., facility, and interests in joint venture
manufacturing operations in Venezuela and India.
    Dana Chairman Southwood J. Morcott said the transaction bolsters the
company's largest core business unit.  A leading producer of axles worldwide,
Dana's Spicer Axle Group and its affiliates currently estimate axle sales of
more than $3 billion in 1997.
    "The medium- and heavy-duty axles we will gain from Eaton complement and
add depth to our global axle product offering," Morcott said.  "This
acquisition is an excellent opportunity to add global, world-class axle
manufacturing capabilities to Dana.  And the international composition of
these operations will support our customers around the world."
    Added Rick Clayton, vice president and general manager, Spicer Heavy Axle
and Brake, "This transaction will not only add to Dana's axle product line,
but will also result in significant engineering, purchasing, manufacturing,
and marketing synergies for Dana in North America, Europe, and South America."
    The acquisition is the latest in a series of strategic moves in 1997 that
has included Dana's acquisition of Clark-Hurth Components and the cylinder
liner and piston ring operations of SPX Corporation.  Other strategic moves
included the divestiture of Dana's European warehouse distribution facilities
and the announced divestiture of Dana's global hydraulic cylinder operations.
Also today, Dana announced an agreement to sell its global vehicular clutch
operations to Eaton.
    Headquartered in Cleveland, Eaton Corporation is a manufacturer of
products for the industrial, vehicular, construction, commercial, and
aerospace markets.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the vehicular, industrial and off-
highway markets.  Its core businesses are axles, driveshafts, structural
components (frames), sealing products, filtration products, engine products,
industrial products, and leasing services.  Its leasing operation was a
recipient of the 1996 Malcolm Baldrige National Quality Award.   Founded in
1904 and based in Toledo, Ohio, Dana operates facilities in 30 countries with
more than 48,000 people.  Its 1996 sales were $7.7 billion.  It has more than
40 product research and development centers worldwide.  The Internet address
 for Dana's home page is http://www.dana.com.

SOURCE  Dana Corporation