Dana Incorporated and Allison Transmission Holdings said Wednesday the deal to sell Dana's off-highway business to Allison has met with required regulatory approvals.
[RELATED: Dana reports Q3 earnings, showing big increases income, cash flow]
"This milestone marks a significant step forward in our transformation strategy," says R. Bruce McDonald, chairman and CEO at Dana. "Finalizing this transaction with Allison, a company well-positioned to continue the success of our off-highway business, has enabled us to return $600 million to shareholders this year and positions us to reduce debt by approximately $2 billion next year."
Both parties intend to close the transaction at year's end.
[RELATED: Allison Transmission's net sales are down about 20% in Q3]
"We look forward to welcoming the off-highway drive and motion systems team and integrating their capabilities into the organization," says David S. Graziosi, chairman and CEO at Allison. "This acquisition aligns with our long-term growth strategy and strengthens our position in the global off-highway market."
