Allison Transmission to Acquire Dana's Off-Highway Business in Strategic $2.7 Billion Deal
On June 11, 2025, Allison Transmission Holdings Inc. (NYSE: ALSN) announced its definitive agreement to acquire the Off-Highway business of Dana Incorporated for approximately $2.7 billion. This acquisition is poised to enhance Allison's global powertrain capabilities and is a significant move in the company's ongoing strategic evolution.
1. Strategic Alignment and Objectives
Allison Transmission's acquisition of Dana's Off-Highway business aligns with its strategic priorities aimed at expanding its footprint in emerging markets, enhancing core technologies, and delivering robust financial outcomes. Upon completion of the transaction, the company anticipates being able to offer an expanded range of commercial-duty powertrain and industrial solutions to a broader customer base worldwide.
David Graziosi, Chair and CEO of Allison Transmission, commented: “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*.” He emphasized the company's aim to leverage this momentum to increase value for all stakeholders on a global scale.
2. Overview of Dana's Off-Highway Business
Dana's Off-Highway business is a well-established player in the drivetrain and propulsion solutions sector, operating in over 25 countries with a workforce of approximately 11,000 employees. The business serves a diverse global customer base across various industries, including construction, forestry, agriculture, specialty, aftermarket, industrial, and mining.
Recognized for its innovative powertrain technologies, Dana's Off-Highway business specializes in hybrid and electric drive systems tailored to meet specific customer needs, further supported by a global network of manufacturing facilities and technical centers.
R. Bruce McDonald, Chair and CEO of Dana, expressed confidence in the acquisition, stating, “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.”
3. Financial Implications and Transaction Details
The acquisition is expected to be immediately accretive to Allison's diluted earnings per share and is projected to generate annual run-rate synergies of approximately $120 million. To finance the transaction, Allison will utilize a combination of cash from its balance sheet and debt.
The agreement has received approval from the Boards of Directors of both companies and is slated to close late in the fourth quarter of 2025, pending customary regulatory approvals. Allison has engaged BofA Securities and KPMG LLP as financial and transaction advisors, respectively, and Latham & Watkins LLP as legal counsel. Committed financing for the acquisition is being provided by Barclays, BofA Securities, and Citigroup.
4. Future Prospects and Analyst Call
The combined entity will leverage its expanded global presence and technical expertise to explore new growth opportunities and develop differentiated solutions in response to evolving customer demands. Allison plans to implement a comprehensive transition and integration process that will ensure continued support for customers, employees, suppliers, and partners.
To discuss the benefits of this acquisition, Allison will hold a conference call with analysts and investors on June 12, 2025, at 8:45 a.m. EDT. The call will feature key executives, including Graziosi, Chief Operating Officer Fred Bohley, and Chief Financial Officer Scott Mell.
As the automotive and industrial sectors increasingly pivot towards hybrid and electric technologies, Allison Transmission's strategic acquisition of Dana's Off-Highway business positions the company to capitalize on emerging trends and enhance its competitive edge in the global market.
