Allison Transmission Holdings Inc. has entered into a definitive agreement to acquire the off-highway business of Dana Incorporated, a provider of drivetrain and propulsion solutions, for approximately $2.7 billion.
Allison Transmission Holdings Inc. (NYSE: ALSN) today announced it has entered into a definitive agreement to acquire the off-highway business of Dana Incorporated, a leading provider of drivetrain and propulsion solutions, 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.
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, specialty, aftermarket, industrial and mining segments, this business is recognized for its industry-leading powertrain technologies, encompassing axles, propulsion solutions and drivetrain components. Additionally, it specializes in hybrid and electric drive systems tailored to customer needs and is further distinguished by its global network of manufacturing facilities and technical centers.
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.
The acquisition of the Dana off-highway business is expected to be immediately accretive to Allison's diluted earnings per share and is anticipated to generate annual run-rate synergies of approximately $120 million. Allison intends to finance the transaction using a combination of cash on the company's balance sheet and debt. The acquisition was approved by both companies' boards of directors, and it is expected to close late in the fourth quarter of 2025, pending customary regulatory approvals.
