Allison Transmission completes acquisition of Dana Incorporated’s Off-Highway Drive & Motion Systems business

Story Highlights

• Allison Transmission
• Dana Incorporated
• divizia Off-Highway Drive & Motion Systems
• achizitie
• drivetrain and propulsion solutions
• Allison Off-Highway Drive & Motion Systems

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Allison Transmission Holdings, Inc. announces it has completed its acquisition of the Off-Highway Drive & Motion Systems business of Dana Incorporated, a leading provider of drivetrain and propulsion solutions, for approximately $2.7 billion. The combination of industry-leading products and advanced technologies will accelerate Allison’s growth and broaden the Company’s position as a global provider of commercial duty mobility and work solutions that Improve the Way the World Works.

“We are excited to welcome our new colleagues from Dana Incorporated’s Off-Highway Drive & Motion Systems business to Allison,” said David Graziosi, Allison Chair, President and CEO. “Together, we have an expanded market reach and broader portfolio of high-quality and reliable products, creating a global platform that will continue to deliver strong financial performance from both organic and inorganic growth. Our talented colleagues are dedicated to helping support our customers and their end users to better capitalize on the global megatrends shaping the modern industrial world.”

The combined company will be headquartered in Indianapolis, Indiana, USA, and led by Graziosi. The company will operate under the Allison name and be comprised of two business units. Allison Transmission will be led by Fred Bohley, President & Business Unit Leader, and Allison Off-Highway Drive & Motion Systems will be led by Craig Price, President & Business Unit Leader. Both Bohley and Price will report to Graziosi, and Bohley will continue to serve as Allison’s Chief Operating Officer. Business unit leadership will be located around the world, reflecting the global nature of the business and the importance of local insights for its customers and stakeholders. Collectively, these changes allow the Company to better serve an expanded customer base with more local sourcing, production and service via a deeper pool of engineering and technological expertise.

“Closing this transaction marks an important step in Dana’s evolution,” said R. Bruce McDonald, Chairman and Chief Executive Officer of Dana. “We are now a more focused company, dedicated to serving light- and commercial-vehicle customers with both traditional and electrified systems. This divestiture, combined with the successful execution of our cost-reduction plan, will strengthen our balance sheet, improve margins, reduce complexity, and position us to accelerate innovation and growth in our core markets.”

BofA Securities and KPMG LLP served as Allison’s financial and transaction advisors respectively, and Latham & Watkins LLP acted as legal advisor. Barclays, BofA Securities, Citigroup and JPMorgan provided committed financing in connection with the transaction. Edelman acted as Allison’s strategic communications advisor.

About Allison Transmission
Allison Transmission Holdings, Inc. is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Enhanced by a track record of strategic acquisitions, Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in Indianapolis, Indiana, USA, the Company manufactures solutions which offer industry-leading value propositions across vital sectors such as infrastructure, mining, energy, agriculture, construction, transportation and national security. For over 110 years, Allison has been recognized as a reliable partner of choice, keeping essential industries moving anytime, in over 150 countries around the world.

About Dana Incorporated
Based in Maumee, Ohio, USA, and with a history dating to 1904, Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.