Allison Transmission Holdings Inc. (NYSE: ALSN) has announced its acquisition of Dana Incorporated's off-highway business for approximately $2.7 billion. This strategic move is in line with Allison's priorities to expand its emerging markets footprint, enhance core technologies, and deliver strong financial results.
Dana's off-highway business, which operates in over 25 countries and employs approximately 11,000 people, serves a global customer base in various segments including construction, forestry, agriculture, specialty, aftermarket, industrial, and mining. The business is known for its industry-leading powertrain technologies, including axles, propulsion solutions, and drivetrain components, as well as its specialization in hybrid and electric drive systems.
Upon completion of the acquisition, Allison anticipates annual run-rate synergies of approximately $120 million. The transaction is expected to be immediately accretive to Allison's diluted earnings per share. The company plans to finance the acquisition using a combination of cash on its balance sheet and debt.
Allison will hold a call with analysts and investors to discuss the benefits of the transaction, with the participation of key executives including David Graziosi, Chair and CEO of Allison, Fred Bohley, Chief Operating Officer, and Scott Mell, Chief Financial Officer.
This acquisition marks a transformative milestone for Allison Transmission, as it seeks to leverage its expanded global presence and technical expertise to realize new growth opportunities and develop differentiated solutions that meet customers' evolving needs. As a result of these announcements, the company's shares have moved 0.75% on the market, and are now trading at a price of $102.31. Check out the company's full 8-K submission here.
