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Dana Receives FTC Clearance to Acquire Eaton's Heavy Axle & Brake Business

26 December 1997

Dana Receives FTC Clearance to Acquire Eaton's Heavy Axle & Brake Business

    TOLEDO, Ohio, Dec. 26 -- Dana Corporation today
announced that it has received clearance from the Federal Trade Commission to
complete the acquisition of the heavy axle and brake business of Eaton
Corporation .
    Dana will pay approximately $287 million for the business, which
anticipates sales of nearly $660 million in 1997.  The acquisition will be the
largest in Dana's 94-year history.  Dana will acquire nine facilities located
in the United States, Argentina, England, Mexico, and Spain, as well as
interest in joint ventures in India and Venezuela.
    Closing for the transaction is expected to occur in early January, 1998,
with closing for the facilities in Mexico and India contingent upon regulatory
approval in those countries.
    Rick Clayton, vice president of Dana's heavy truck components group, said,
"The acquisition is important for the heavy-truck industry.  Our global
customers support this acquisition and will benefit through the synergies that
will occur in manufacturing processes and technology."
    The acquisition is another element in a series of strategic moves by Dana
in the last year that has included the purchase of Clark-Hurth Components and
the Sealed Power Division of SPX Corporation.  Additionally, Dana has entered
into various joint ventures, including a 75-percent share of Wix-Filtron, a
Polish manufacturer of filtration products.
    Dana also has announced nine divestitures in the last year, including the
sale of its vehicular clutch business to Eaton in July.  Dana also this year
has sold its U.S. heavy-truck structural components operation; European
warehouse distribution facilities in France, the Netherlands, Portugal, and
the United Kingdom; transmission business; leaf spring manufacturing assets;
flat rubber products business; and its 49-percent interest in Korea Spicer.
It announced the sale of its brake hose business earlier this week.
    Dana Corporation is a global leader in the engineering, manufacture, and
distribution of products and systems for the automotive, heavy truck,
off-highway, engine, and industrial markets.  It also operates a leasing
services business, Dana Credit Corporation.   Founded in 1904 and based in
Toledo, Ohio, Dana operates facilities in 30 countries and employs more than
48,000 people.  The Internet address for Dana's home page is http://www.dana.com.

SOURCE  Dana Corporation