Dana Corp. announced today (Oct. 29) it plans to sell its Tekonsha Engineering Co. and Theodore Bargman Co. subsidiaries, both suppliers to the towable RV sector, to The Riverside Co., a leveraged buyout firm.
Dana also plans to sell subsidiary American Electronic Components Inc. (AEC) of elkhart, Ind., to sell to Riverside.
Terms of the transaction were not revealed. It is subject “to customary closing conditions,” according to the Toledo, Ohio-based Dana.
Tekonsha, located in Tekonsha, Mich., Bargman, located in Albion, Ind., and AEC, when combined, employ nearly 700 people and had total sales of $81 million in 2001.
Dana employs 70,000 people worldwide and its sales revenue totaled $10.3 billion in 2001.
Tekonsha makes aftermarket electric brake controls and related products for the towable RV, agricultural and other recreational trailer markets.
The transaction also includes Tekonsha’s SurePull Products facility in Sheridan, Ark., which produces hitches and towing accessories.
Meanwhile, Bargman produces exterior illumination products, electrical accessories, locks and latches and AEC makes sensors, switches and relays.
“The decision to sell these operations is consistent with Dana’s long-term strategy of focusing on core products,” said Joe Magliochetti, Dana’s chairman and CEO. “These actions focus us even more sharply on our automotive, commercial vehicle and off-highway customers.
“At the same time, we believe these businesses and their people are better served as part of a company with a growth strategy for these niche markets,” Magliochetti added.
Riverside has offices in New York, Cleveland, Dallas and San Francisco. It specializes in investing in “companies at the smaller end of the middle market.” It has more than $500 million under management.