Allison Transmission acquires Dana’s off-highway unit

Allison Transmission has completed the acquisition of the off-highway drive and motion systems business of Dana Incorporated, for approximately $2.7 billion.

Dana chief executive, R. Bruce McDonald said the sale “marks an important step in Dana’s evolution”.

“We are now a more focused company, dedicated to serving light- and commercial-vehicle customers with both traditional and electrified systems,” he said.

“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,” he added.

Allison chief executive, David Graziosi said the acquisition will create “a global platform that will continue to deliver strong financial performance from both organic and inorganic growth”.

The combined company will be headquartered in Indianapolis, and led by Graziosi. The company will operate under the Allison name and be comprised of two business units.