Allison and Dana. A ‘stars and stripes’ happy end
Allison Transmission officially acquired Dana’s Off-Highway Business
Dana and Allison, so it was more than just rumors! We had heard about a gunfight at the OK Corral between Allison and Mr X for the acquisition of the Dana off-highway division. “When a man with .45 meets a man with a rifle, the man with a pistol’s a dead man.” Quoting Sergio Leone’s famous spaghetti western ‘A Fistful of Dollars’, we confess that we don’t know who Mr X is. We have our suspects, but it doesn’t really matter right now. Mr X passed away or simply escaped. The news that Dana’s off-highway business had been put on the market was made official at the end of November 2024.
Allison Transmission announces acquisition of Dana ’s Off-Highway Business
Allison entered into a definitive agreement to acquire the Off-Highway business of Dana Incorporated, a leading provider of drivetrain and propulsion solutions, for approximately $2.7 billion. A takeover that is likely to be welcomed by the Trump administration, marking Allison’s major leap into the global construction and agricultural electrification scenario. Allison will no longer be represented only by trucks on construction sites. This acquisition aligns with Allison’s strategic priorities to expand its emerging markets footprint, enhance core technologies and deliver strong financial results. Upon completion of the transaction, Allison will be able to offer a wider range of commercial-duty powertrain and industrial solutions to more OEMs and end users worldwide.
Dana’s Off-Highway business operates in over 25 countries and serves a global customer base supported by approximately 11,000 employees. Allison will deploy a transition and integration process across the business. The acquisition of the Dana off-highway business is expected to be immediately accretive to Allison’s diluted earnings per share and is anticipated to generate annual run-rate synergies of approximately $120 million. Allison intends to finance the transaction using a combination of cash on the company’s balance sheet and debt. The acquisition was approved by both companies’ Boards of Directors, and it is expected to close late in the fourth quarter of 2025, pending customary regulatory approvals.
Statements from the C-suite
“This acquisition marks a transformative milestone in our commitment to empowering our current and future customers with propulsion and drivetrain solutions that Improve the Way the World Works,” said David Graziosi, Allison Transmission Chair and CEO. “We look forward to harnessing this momentum to increase value for all of our stakeholders worldwide.”
“Dana’s off-highway business has long been committed to delivering innovative solutions for off-highway applications, and we are confident that under Allison’s ownership, the team will be well-positioned to continue that legacy,” said R. Bruce McDonald, Dana Chair and CEO. “This agreement represents a strategic opportunity to ensure the ongoing success of the business, while allowing Dana to focus on our core priorities. We look forward to seeing the off-highway business thrive under Allison’s leadership.”
