DANA acquired Echlin Inc. for $3.9 billion, a transaction completed in July 1998, structured as Tax-free, stock-for-stock merger accounted for as a pooling of interests; Dana's wholly owned subsidiary Echo Acquisition Corp. merged into Echlin, with Echlin surviving as a Dana subsidiary..
Echlin Inc. operates in Automotive Aftermarket (brakes, fluid-handling systems and engine parts), is based in Branford, Connecticut, United States, with operations worldwide including the Quinton Hazell distribution business in Europe. Echlin was one of the world's largest independent producers of parts for the automotive aftermarket, supplying brake systems, fluid-handling products and engine parts, and operating the well-known Quinton Hazell distribution network across Europe. Dana merged its subsidiary Echo Acquisition Corp. into Echlin in a stock-for-stock transaction, creating one of the largest independent suppliers of components to both automotive original-equipment manufacturers and the aftermarket. Echlin reported sales of about $3.6 billion in 1997, and the combination added brakes and fluid-handling systems to Dana's core lineup and led Dana to form a new Automotive Aftermarket Group.
Create a stronger, more balanced company by greatly expanding Dana's presence in the global automotive aftermarket and selected OE segments, adding brakes and fluid-handling systems to Dana's core products and leveraging Echlin's aftermarket position to sell Dana products worldwide.
This strategic combination creates a stronger and more balanced Dana with the resources to be the worldwide leader under the vehicle, under the hood, and in the aftermarket.Southwood J. Morcott, Chairman and Chief Executive Officer, Dana Corporation
Advisory firms were not disclosed for this transaction.