Dana Incorporated completed the sale of its Off‑Highway Drive & Motion Systems business to Allison Transmission Holdings on January 2 2026. The transaction, valued at roughly $2.7 billion, generated about $2.4 billion in net proceeds after taxes, transaction costs, and assumed liabilities. Dana will use $2 billion of the proceeds to retire debt and return $1 billion to shareholders through 2027, while the remaining cash will support future growth initiatives.
The sale removes Dana’s cyclically exposed Off‑Highway segment, allowing the company to focus on its core on‑highway light‑ and commercial‑vehicle markets. By shedding the Off‑Highway business, Dana can sharpen its product portfolio around driveline and thermal‑management solutions for automotive customers, including electrified systems. Allison Transmission, in turn, gains a complementary product line and a $5.5 billion revenue base, positioning the combined entity to serve a broader range of commercial‑vehicle and industrial customers and to realize annual run‑rate synergies of approximately $120 million.
Dana’s balance sheet will strengthen markedly. The $2 billion debt reduction brings the company’s net leverage ratio closer to its target of roughly 1× over the business cycle. The $1 billion shareholder return, spread through 2027, reflects Dana’s confidence in its cash‑flow generation and its commitment to delivering value to investors while maintaining a solid capital structure.
R. Bruce McDonald, Dana’s Chairman and CEO, said the transaction “marks an important step in Dana’s evolution. We are now a more focused company, dedicated to serving light‑ and commercial‑vehicle customers with both traditional and electrified systems.” David Graziosi, Allison’s Chair, President, and CEO, added that the acquisition “expands our market reach and broadens our portfolio of high‑quality, reliable products, creating a global platform that will continue to deliver strong financial performance from both organic and inorganic growth.”
The deal, announced in June 2025, was completed on schedule and confirms the strategic shift that both companies have pursued. The transaction positions Dana to accelerate innovation in its core markets and gives Allison a stronger foothold in the commercial‑vehicle and industrial sectors, setting the stage for continued growth and value creation for both shareholders.
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