Allison Transmission to acquire Dana Inc. business unit for $2.7 billion

Indianapolis-based Allison Transmission Holdings Inc. is planning to acquire the off-highway business unit of Ohio-based Dana Inc. in a deal valued at $2.7 billion.

Allison said the acquisition will allow it to offer a wider range of commercial-duty powertrain and industrial products to more customers around the world.

Dana’s off-highway business provides powertrain technologies, including axles, propulsion solutions and drivetrain components, to customers in a variety of industries such as construction, agriculture, forestry and mining.

The business unit employs about 11,000 people in 25 countries. Allison did not specify if any jobs would be negatively affected by the deal.

“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,” Dana CEO Bruce McDonald said in a news release. “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.”

Allison said the combined company will utilize its expanded global presence and expertise to find new growth opportunities for the business.

The acquisition, according to the company, is expected to create $120 million in annual cost savings. Allison plans to finance the deal using a combination of cash on hand and debt financing.

The boards of directors of both companies have approved the deal, which is expected to close in the fourth quarter, pending customary regulatory approvals.

Allison Transmission is Indiana’s 18th-largest public company with just more than $3 billion in revenue in 2023, according to IBJ research. The company employs about 3,500 people, including 2,800 in Indiana.