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Allison Transmission has completed the acquisition of Dana Incorporated's Off Highway Drive & Motion Systems business for approximately USD 2.7 billion, strengthening its position in off highway and industrial mobility markets. The deal brings Dana's drivetrain and motion systems for construction, mining, agriculture, energy, and infrastructure sectors under Allison's umbrella. The company will operate through two units Allison Transmission and Allison Off Highway Drive & Motion Systems with headquarters in Indianapolis. The acquisition enhances product offerings, expands the global footprint, and positions Allison for long-term growth while managing integration and economic risks.
Allison Transmission Holdings has finalized its acquisition of Dana Incorporated's Off Highway Drive & Motion Systems business for around USD 2.7 billion, marking a strategic expansion into off highway and industrial mobility sectors. This acquisition brings Dana's powertrain, drivetrain, and propulsion technologies for construction, mining, agriculture, energy, and infrastructure applications into Allison's portfolio, broadening its product offerings and global reach. Advertisement
Following the deal, Allison will operate through two distinct business units: Allison Transmission, continuing its focus on automatic transmissions, and Allison Off Highway Drive & Motion Systems, led by Craig Price as president. Fred Bohley remains president of Allison Transmission and chief operating officer, with both reporting to Chair, President, and CEO David Graziosi. The combined entity will continue to be headquartered in Indianapolis, Indiana, with leadership and operational teams positioned globally to reflect its international customer base.
Dana's off highway division operates in more than 25 countries and employs roughly 11,000 people. Its products include traditional and hybrid propulsion systems, advanced drivetrain components, and technical support services. Integrating this business strengthens Allison's capabilities to provide efficient, technologically advanced solutions for commercial and off-highway applications, addressing increasing demand for energy-efficient and high-performance industrial equipment.
The acquisition aligns with Allison's long-term growth strategy, combining organic expansion with strategic acquisitions. Financing was secured through a consortium of lenders, including Barclays, Bank of America Securities, Citigroup, and JPMorgan. BofA Securities and KPMG LLP served as financial and transaction advisers, while Latham & Watkins LLP provided legal guidance. This deal adds to Allison's history of targeted acquisitions to diversify beyond automatic transmissions, a business it serves in over 150 countries across transportation, defence, construction, and industrial sectors.
While the acquisition offers significant growth potential, Allison noted ongoing risks from integration costs, global economic volatility, competitive pressures, and supply chain disruptions. The company emphasized that successful integration of Dana's off-highway operations is essential to fully realize the strategic benefits of the acquisition.
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