Allison Transmission to Acquire Dana's Off-Highway Business for $2.7 Billion

Strategic Insights -

Allison Transmission Holdings Inc. has entered into a definitive agreement to acquire the off-highway business of Dana Incorporated for approximately $2.7 billion. This acquisition aligns with Allison's strategic priorities to expand its emerging markets footprint, enhance core technologies, and deliver strong financial results. 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.

Key Takeaways:

  • Allison Transmission Holdings Inc. will acquire the off-highway business of Dana Incorporated for approximately $2.7 billion.
  • The acquisition is expected to be immediately accretive to Allison's diluted earnings per share and generate annual run-rate synergies of approximately $120 million.
  • 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 needs.
  • Allison will deploy a transition and integration process across the business that continues to support customers, employees, suppliers, and partners.
  • The acquisition was approved by both companies' Boards of Directors and is expected to close late in the fourth quarter of 2025, pending customary regulatory approvals.
  • BofA Securities and KPMG LLP are serving as Allison's financial and transaction advisors, respectively, and Latham & Watkins LLP is serving as legal advisor.
  • Barclays, BofA Securities, and Citigroup provided committed financing in connection with the transaction.
  • Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are serving as Dana's financial advisors.
  • Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as Dana's legal counsel.
  • EY Corporate Finance is serving as Dana's transaction advisor.
  • Allison will hold a call with analysts and investors on June 12, 2025, to discuss the benefits of the transaction. Participating in the call will be Dave Graziosi, Chair and CEO of Allison, Fred Bohley, Allison's Chief Operating Officer, and Scott Mell, Allison's Chief Financial Officer.

Statistics:

  • The acquisition price is approximately $2.7 billion.
  • The transaction is expected to be immediately accretive to Allison's diluted earnings per share.
  • Annual run-rate synergies are expected to be approximately $120 million.
  • The combined company will operate in over 25 countries and serve a global customer base supported by approximately 11,000 employees.
  • The acquisition is expected to close late in the fourth quarter of 2025, pending customary regulatory approvals.

Sources:

  • "Allison Transmission to Acquire Off-Highway Business of Dana Incorporated" press release dated June 11, 2025.
  • Edgar Online via COMTEX, "Allison Transmission Holdings Inc" filing dated June 11, 2025.