Allison Transmission has introduced a definitive settlement to accumulate Right now Off-Freeway enterprise for roughly $2.7 billion. The acquisition, anticipated to shut late within the fourth quarter of 2025 pending regulatory approvals, goals to increase Allison’s present powertrain and electrification product strains, considerably enhancing capabilities in hybrid and electrical drivetrain techniques for business and industrial purposes.
Dana’s Off-Freeway enterprise develops drivetrain, propulsion and electrified options, serving prospects throughout building, agriculture, forestry, specialty autos, aftermarket, industrial, and mining industries. The division operates in over 25 international locations, employs roughly 11,000 people, and is acknowledged for its hybrid and electrical drive applied sciences, together with axles, drivetrain parts and customized propulsion options.
In response to Allison, the acquired enterprise is anticipated to generate annual run-rate synergies of roughly $120 million and to be instantly accretive to diluted earnings per share. Allison plans to finance the acquisition by way of a mix of money available and debt.
“Dana’s off-highway enterprise has lengthy been dedicated to delivering modern options for off-highway purposes, and we’re assured that below Allison’s possession, the staff will probably be well-positioned to proceed that legacy,” stated R. Bruce McDonald, Dana Chair and CEO. “This settlement represents a strategic alternative to make sure the continued success of the enterprise, whereas permitting Dana to deal with our core priorities. We stay up for seeing the off-highway enterprise thrive below Allison’s management.”
Following the combination, Allison intends to make use of its broader international presence and bolster its present product portfolio, catering on to evolving buyer necessities in heavy-duty tools markets, together with electrification traits in business autos and industrial equipment.
Allison Transmission makes a speciality of propulsion options for business, protection, and off-highway autos, together with absolutely automated transmissions and electrified techniques for on-highway vans, buses and building tools. Headquartered in Indianapolis, Indiana, the corporate has international manufacturing and electrification engineering facilities supporting a spread of rising EV and hybrid purposes.
Supply: Allison Transmission
