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Dana Holding To Sell Unit To Metalsa

Auto parts maker said it is selling its structural products business to Mexican chassis frame manufacturer Metalsa for up to $150 million.

MAUMEE, Ohio (AP) -- Auto parts maker Dana Holding Corp. said Wednesday it is selling its structural products business to Mexican chassis frame manufacturer Metalsa for up to $150 million.

Metalsa, a subsidiary of Grupo Proeza, will assume control of 10 Dana manufacturing facilities that produce structural components for chassis and body structures in light and commercial vehicles, including accompanying administrative, technical and sales centers.

The facilities are in Argentina, Australia, Brazil, the U.S. and Venezuela.

The transaction also includes Dana's interest in its Chassis Systems Limited joint venture in the United Kingdom with GKN Auto Structures.

The agreement calls for Metalsa and affiliates to acquire the equity and assets of the global operations comprising Dana's structural products business from Dana for up to $150 million. The buyer will assume certain liabilities related to the business.

The purchase price includes $130 million payable at closing.

In connection with the completion of the deal, Dana expects to recognize a pretax loss in the range of $150 million to $180 million, most of which is expected to be recorded in the fourth quarter of this year.

The deal is subject to regulatory approvals.

The operations and assets being sold generated consolidated revenues of roughly $695 million in 2008.