Allison Transmission Announces Acquisition of Dana's Off-Highway Business, Strengthening its Global Powertrain Capabilities

Allison Transmission (ALSN, Financial) to acquire Dana's Off-Highway business for $2.7 billion.

The acquisition is anticipated to close in late Q4 2025, subject to regulatory approval.

Expected annual synergies of approximately $120 million with immediate EPS accretion.

Allison Transmission Holdings Inc. (ALSN) has announced a definitive agreement to acquire the Off-Highway business of Dana Incorporated for approximately $2.7 billion. This strategic acquisition aims to enhance Allison's global powertrain capabilities by integrating Dana's operations, which extend across 25 countries and include a workforce of about 11,000 employees.

The acquisition is targeted at expanding Allison's reach in the construction, forestry, agriculture, specialty, aftermarket, industrial, and mining segments. Expected to close in the fourth quarter of 2025, the transaction will be financed through a combination of cash and debt, pending customary regulatory approvals.

Financially, the deal is projected to be immediately accretive to Allison's earnings per share upon completion with annual run-rate synergies estimated at $120 million. This move also positions Allison to capitalize on Dana's expertise in hybrid and electric drive systems, bolstering its capabilities in the growing electrification market.

Allison Chairman and CEO David Graziosi expressed optimism about the acquisition, emphasizing its strategic importance in expanding market presence and technological enhancement. Dana's R. Bruce McDonald added that the transaction represents a strategic opportunity for both companies.

The acquisition has secured the approval of both companies' Boards of Directors. Financial and transaction advisors involved include BofA Securities, KPMG, Barclays, and Citigroup for Allison, and Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC for Dana. The deal demonstrates thorough due diligence, reinforced by committed financing from top-tier financial institutions.