Allison Moves to Acquire Dana’s Industrial Unit

Indiana, United States- Allison Transmission Holdings Inc., has entered into a definitive agreement to acquire the Off-Highway division of Dana Incorporated for approximately $2.7 billion. This strategic acquisition supports Allison’s goals to broaden its global presence, strengthen core technologies, and deliver robust financial performance.

Dana’s Off-Highway business operates across more than 25 countries, with a workforce of around 11,000 employees. It provides advanced drivetrain and propulsion solutions for industries including construction, forestry, agriculture, mining, specialty vehicles, and the aftermarket. The business is known for its axles, drivetrain components, hybrid and electric drive systems, and benefits from a global network of manufacturing facilities and technical centers.

The transaction will allow Allison to offer a more comprehensive portfolio of commercial-duty powertrain and industrial solutions, serving a wider range of customers worldwide. The combined company is expected to unlock new growth opportunities by leveraging its expanded technical expertise and global reach.

Allison plans a structured transition and integration process that prioritizes continuity and support for customers, employees, suppliers, and partners.

The deal is expected to be immediately accretive to Allison’s diluted EPS and to generate approximately $120 million in annual run-rate synergies. It will be funded through a mix of cash on hand and new debt. The Boards of Directors of both companies have approved the transaction, which is expected to close by late Q4 2025, subject to regulatory approvals.

Advisors to Allison include BofA Securities (financial), KPMG LLP (transaction), and Latham & Watkins LLP (legal). Barclays, BofA Securities, and Citigroup have committed to providing financing. Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are advising Dana, with legal counsel from Paul, Weiss, Rifkind, Wharton & Garrison LLP and transaction advisory from EY Corporate Finance.

Mr. David Graziosi, Allison Transmission Chair and CEO, said, "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. We look forward to harnessing this momentum to increase value for all of our stakeholders worldwide."

Mr. R. Bruce McDonald, Dana Chair and CEO, said, 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. 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."