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Allison Transmission to acquire Dana’s off-highway business, expanding EV and hybrid drivetrain capabilities
- Allison Transmission is set to acquire Dana's Off-Highway business for about $2.7 billion, aiming to enhance its powertrain and electrification product lines.
- The acquisition, subject to regulatory approvals, is expected to close in the late fourth quarter of 2025.
- Dana's Off-Highway business provides drivetrain and electrified solutions for various industries, known for its hybrid and electric drive technologies.
- The acquired business is forecasted to yield around $120 million in annual synergies and positively impact diluted earnings per share.
- The financing for the deal will involve a mix of cash reserves and debt by Allison.
- R. Bruce McDonald, Dana's Chair and CEO, expressed confidence in Allison's ability to continue delivering innovative solutions for off-highway applications.
- Allison intends to leverage its global reach and enhance its product offerings to meet changing demands in heavy-duty equipment markets post the acquisition.
- Allison Transmission specializes in propulsion solutions for commercial, defense, and off-highway vehicles, including automatic transmissions and electrified systems.
- The company is headquartered in Indianapolis and supports various EV and hybrid applications through its global engineering centers.
- Dana's Off-Highway business is present in over 25 countries and employs about 11,000 staff.
- This acquisition allows Dana to concentrate on its core priorities while ensuring the acquired business thrives under Allison's leadership.
- The deal signifies a strategic opportunity to facilitate the ongoing success of Dana's Off-Highway business.
- Allison aims to expand its hybrid and electric drivetrain capabilities for commercial and industrial applications.
- The acquisition aligns with evolving trends in electrification within the commercial vehicle and industrial machinery sectors.
- The agreement is seen as a way to maintain the commitment to delivering innovation in off-highway applications.
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