Allison Transmission Holdings Inc. announced a definitive agreement to acquire the Off-Highway business of Dana Incorporated for approximately $2.7 billion. This acquisition aligns with Allison's strategic priorities to expand its emerging markets footprint and enhance core technologies.
The acquisition 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 plans to finance the transaction using a combination of cash on its balance sheet and debt, targeting a net leverage of less than 3.0x at close.
Dana's Off-Highway business operates in over 25 countries, serving diverse segments including construction, forestry, agriculture, and mining, with expertise in axles, propulsion solutions, and hybrid/electric drive systems. The transaction is expected to close late in the fourth quarter of 2025, pending customary regulatory approvals, and will significantly broaden Allison's global commercial-duty powertrain and industrial solutions.
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