Allison Transmission Holdings has entered into a definitive agreement to acquire the Off-Highway business of Dana Incorporated, a provider of drivetrain and propulsion solutions, for approximately USD 2.7 billion. Upon completion of the transaction, Allison will be able to offer a wider range of commercial-duty powertrain and industrial solutions to more customers and end users worldwide.
“This acquisition marks a transformative milestone in our commitment to empowering our current and future customers with propulsion and drivetrain solutions that Improve the Way the World Works,” said David Graziosi, Allison Transmission Chair and CEO. “We look forward to harnessing this momentum to increase value for all of our stakeholders worldwide.”
Dana’s Off-Highway business operates in over 25 countries and serves a global customer base supported by approximately 11,000 employees. Providing solutions for a wide range of applications in construction, forestry, agriculture, speciality, aftermarket, industrial and mining segments, this business is recognised for its industry-leading powertrain technologies, encompassing axles, propulsion solutions and drivetrain components. Additionally, it specialises in hybrid and electric drive systems tailored to customer needs and is further distinguished by its global network of manufacturing facilities and technical centres.
“Dana’s off-highway business has long been committed to delivering innovative solutions for off-highway applications, and we are confident that under Allison’s ownership, the team will be well-positioned to continue that legacy,” said R. Bruce McDonald, Dana Chair and CEO. “This agreement represents a strategic opportunity to ensure the ongoing success of the business, while allowing Dana to focus on our core priorities. We look forward to seeing the off-highway business thrive under Allison’s leadership.”
The combined company will utilize its expanded global presence and technical expertise to realize new growth opportunities and develop differentiated solutions that meet customers’ evolving wants and needs. Allison will deploy a transition and integration process across the business that continues to support customers, employees, suppliers and partners.
Financial and Transaction Details
The transaction is expected to be immediately accretive to Allison’s diluted earnings per share and is projected to deliver approximately USD120 million in annual run-rate synergies. Allison plans to finance the acquisition through a mix of existing cash and newly issued debt. The Boards of Directors of both companies have approved the agreement, and the transaction is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals.
Advisors on the deal include BofA Securities and KPMG LLP as Allison’s financial and transaction advisors, with Latham & Watkins LLP providing legal counsel. Committed financing for the deal is being provided by Barclays, BofA Securities, and Citigroup.
Dana is being advised by Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC, with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP and transaction advisory from EY Corporate Finance.
Investor Call Scheduled
Allison Transmission will host a conference call with analysts and investors to discuss the transaction on June 12, 2025, at 8:45 am EDT (6:15 pm IST). Participating on the call will be CEO David Graziosi, Chief Operating Officer Fred Bohley, and Chief Financial Officer Scott Mell.
Leave a Reply