"Closing this transaction marks an important step in Dana's evolution," says R. Bruce McDonald, chairman and CEO of Dana. "We are now a more focused company, dedicated to serving light- and commercial-vehicle customers with both traditional and electrified systems."
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The proceeds of the transaction will enable Dana to reduce debt and return about $1 billion to shareholders through 2027.
"We are excited to welcome our new colleagues from Dana Incorporated's Off-Highway Drive & Motion Systems business to Allison," says David Graziosi, chairman, president and CEO of Allison. "Together, we have an expanded market reach and broader portfolio of high-quality and reliable products, creating a global platform that will continue to deliver strong financial performance from both organic and inorganic growth."
The combined company will operate under the Allison name and will be headquartered in Indianapolis. There will be two business units: Allison Transmission, headed by Fred Bohley, and Allison Off-Highway Drive & Motion Systems, led by Craig Price. Both Price and Bohley will report to Graziosi.
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Dana thanked the off-highway employees, with the company stating it was confident the business would thrive with Allison.
"This divestiture, combined with the successful execution of our cost-reduction plan, will strengthen our balance sheet, improve margins, reduce complexity and position us to accelerate innovation and growth in our core markets," McDonald says.
Allison says the acquisition will help it serve an expanded customer base with more local sourcing and a deeper pool of engineering and technological expertise.
"Our talented colleagues are dedicated to helping support our customers and their end users to better capitalize on the global megatrends shaping the modern industrial world," Graziosi adds.
