Wanxiang America (USA, a subsidiary of Wanxiang Group, China; website), via a new subsidiary, has acquired a portion of the coupled products division of Dana Corporation (USA; under Chapter 11 bankruptcy protection).

The potential agreement was originally disclosed in June.

To date, Wanxiang Americas has been best known for its QC brand bearings, hub units and bearing components manufactured by the parent company in China.

The acquisition agreement with Wanxiang is tied to a parallel deal struck by Dana to divest coupled products operations in Europe and North America to Orhan Holding. Dana and Orhan were partnered in several of the locations. Dana reported in bankruptcy proceedings that part of the deal will result in an after-tax gain of $35 million.

Coupled Products manufactures fluid routing components for several automotive subsystems, including power steering, HVAC, under-engine, airbag, and brake systems.

Wanxiang's acquisition facilities include Coupled Products plants and assets in San Luis Potosi, Mexico; Columbia City, Indiana; Pensacola, Florida; Rochester Hills, Michigan; Upper Sandusky, Ohio; and Wharton, Ohio. Altogether, those operations currently employ almost 2,100 people; 2006 sales were $200 million.

Terms of the acquisition were $1 from Wanxiang, and the assumption of the operations' debts. Wanxiang also accepted entering into, "certain ancillary agreements, including real estate subleases, assignments of intellectual property and a transition services agreement."

Dana told the court it expects to book an after-tax $35 million loss from the Wanxiang deal, zeroing the $35 million gained from the Orhan Holding side of the transaction -- plus $1.