Dana Incorporated Finalizes Major Sale of Off-Highway Business to Allison Transmission

Dana Incorporated's Strategic Transition: Sale of Off-Highway Business

Dana Incorporated, a prominent player in the mobility solutions sector, has officially completed the sale of its Off-Highway business to Allison Transmission Holdings, Inc. for an impressive $2.7 billion. This transaction, finalized on January 2, 2026, is a testament to Dana's robust strategy of focusing on core operations and strengthening its position within the light- and commercial-vehicle markets.

The Impact of the Sale

The sale, valued at 7.5 times the expected adjusted EBITDA for the Off-Highway business in 2025, signifies a major milestone in Dana's ongoing transformation. R. Bruce McDonald, Chairman and CEO of Dana, emphasized that this divestiture is crucial for the company's evolution. "We have become a more focused company, committed to delivering exceptional products and services to our valued customers in both traditional and electrified vehicle markets," he commented.

Furthermore, the proceeds from the sale will allow Dana to significantly reduce its debt by approximately $2 billion, aligning with its target of achieving a net leverage of 1x across the business cycle. Additionally, Dana has announced plans to return $1 billion to shareholders through 2027, with about $650 million already returned since the announcement of the transaction, exceeding previous targets by $50 million.

Acknowledging Off-Highway Employees

Dana has expressed heartfelt gratitude towards the employees of the Off-Highway division, reflecting on their hard work and dedication that have shaped a world-class organization. The company is confident that these talented individuals will continue to excel under the Allison umbrella, contributing to the ongoing success of the combined entity.

Financial Advisors and Legal Counsel

The transaction was supported by Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC, who acted as financial advisors to Dana. Legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Ernst & Young LLP served as transaction advisor.

The Future Outlook for Dana

Dana's focus moving forward will center on innovation and growth in its core markets, which include propulsion and energy-management solutions. The company has reported solid sales of around $7.7 billion in 2024, with a workforce of approximately 28,000 across 22 countries. With a legacy dating back to 1904, Dana has gained numerous accolades, including recognition as one of the "World's Most Ethical Companies" for 2025 by Ethisphere and one of "America's Most Responsible Companies" by Newsweek.

As Dana continues to refine its operations and expand its market capabilities, stakeholders anticipate that these strategic moves will reinforce its standing within the automotive supply chain, ultimately driving sustainable growth and shareholder value.

Conclusion

In summary, the sale of Dana’s Off-Highway business marks a significant step in its transformational journey, enabling it to concentrate on its key markets and leverage its innovative potential. This transaction highlights not only the company’s strategic foresight but also its commitment to creating value for shareholders and customers alike while positioning itself for future opportunities in the evolving mobility landscape.