Allison Transmission Holdings Inc. has entered into a definitive agreement to acquire the Off-Highway business of Dana Incorporated, a global provider of drivetrain and propulsion solutions, for approximately $2.7 billion.

The acquisition aligns with Allison’s strategic goals to expand its footprint in emerging markets, enhance its core technologies, and deliver strong financial performance. Once the transaction is completed, Allison will be positioned to offer a broader range of commercial-duty powertrain and industrial solutions to a wider global customer base.

“This acquisition marks a transformative milestone in our commitment to providing advanced propulsion and drivetrain solutions,” said David Graziosi, Allison Transmission chair and CEO. “We look forward to leveraging this opportunity to create value for our stakeholders around the world.”

Global Reach and Technical Expertise from Dana

Dana’s Off-Highway business operates in more than 25 countries, employing approximately 11,000 people. It serves a broad spectrum of sectors, including construction, forestry, agriculture, mining, and industrial markets. 

The business is known for its powertrain technologies, including axles, propulsion systems, and drivetrain components. It also offers hybrid and electric drive systems customized to client needs, supported by a global network of manufacturing and technical centers.

“Dana’s Off-Highway business has long been a leader in innovation, and we are confident it will continue to succeed under Allison’s ownership,” said R. Bruce McDonald, Dana chair and CEO. “This transaction allows Dana to sharpen its focus on core priorities while ensuring a strong future for the off-highway segment.”

The combined entity will build on its expanded global presence and engineering capabilities to pursue new growth opportunities and deliver differentiated solutions tailored to evolving market demands. Allison plans to implement a structured transition and integration process that supports employees, customers, suppliers, and partners.

Transaction Terms and Financing

The transaction is expected to be immediately accretive to Allison’s diluted earnings per share and to generate approximately $120 million in annual run-rate synergies. Allison will finance the acquisition with a mix of cash and new debt. The deal has been approved by both companies’ boards of directors and is expected to close in the fourth quarter of 2025, pending customary regulatory approvals.

BofA Securities and KPMG LLP are acting as Allison’s financial and transaction advisors, respectively, with Latham & Watkins LLP providing legal counsel. Barclays, BofA Securities, and Citigroup have provided committed financing. Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are serving as Dana’s financial advisors, with Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel and EY Corporate Finance as transaction advisor.