#USA #Indianapolis #Dana Incorporated #Allison Transmission #industrial solutions

Allison Transmission Drives Forward with Strategic Acquisition

Allison Transmission Holdings, Inc. has finalized a significant acquisition that promises to reshape the landscape of industrial mobility solutions. By acquiring Dana Incorporated's Off-Highway Drive & Motion Systems business for approximately $2.7 billion, Allison is setting the stage for a robust expansion in markets that demand innovative and reliable mobility solutions. This strategic move will enable Allison to harness a combined revenue of $5.5 billion, thus creating a formidable player in the global industrial sector.

Expanding Global Footprint

With operations across 29 countries, the newly combined entity is poised to meet the surging demand for advanced mobility solutions. The acquisition allows Allison Transmission to broaden its market reach significantly, enhancing its portfolio with industry-leading products and technologies. The merger is anticipated to streamline operations and foster growth across various vital industries such as infrastructure, energy, agriculture, and construction.

According to David Graziosi, Chair, President, and CEO of Allison, this acquisition marks a pivotal moment for the company. "By welcoming our new colleagues from Dana, we are not just expanding our operational footprint but also enriching our portfolio with high-quality products that cater to the evolving needs of our customers. The combined expertise drives us towards achieving significant growth while addressing global industrial megatrends."

Leadership Structure and Strategic Goals

Headquartered in Indianapolis, Indiana, the newly formed entity will maintain the Allison name and operate under two distinct business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Fred Bohley has been appointed as the President and Business Unit Leader of Allison Transmission, while Craig Price will oversee the Off-Highway division. Both leaders report directly to Graziosi, emphasizing a cohesive strategy that aligns operational functions with market demands.

The leadership structure will also feature global operations teams, drawing on local insights to better serve customers. This strategic layering will enhance Allison's ability to provide localized support, sourcing, and production, thereby elevating customer satisfaction while leveraging technical expertise worldwide.

Backing and Financial Advisors

Navigating such high-stakes acquisitions requires a robust support structure, which is why Allison enlisted the expertise of BofA Securities and KPMG LLP as financial and transaction advisors, respectively. Legal matters were managed by Latham & Watkins LLP, ensuring a smooth transaction process. To solidify the financial aspect, major financial institutions such as Barclays, Citigroup, and JPMorgan provided committed financing vital for the merger.

The Road Ahead

As the landscape of industries relying on high-performance mobility continues to evolve, the integration of Dana's Off-Highway Drive & Motion Systems equips Allison Transmission to respond adeptly to technological advancements and shifting market needs. This acquisition is more than a mere business transaction; it signifies dedicated efforts to support sectors heavily influenced by national security concerns, construction demands, and agricultural efficiency.

Moreover, Allison's vision emphasizes the importance of preparing for electric and hybrid vehicle developments, further extending its capability in the rapidly changing mobility market.

In essence, Allison Transmission's acquisition of Dana is a calculated step that amplifies its operational strength, technological capabilities, and market presence, setting the company on a path for accelerated growth. By synchronizing the strengths of both organizations, Allison is well-equipped to lead the charge in delivering cutting-edge solutions as industries worldwide adapt to modern challenges. This merger not only enriches Allison’s portfolio but fundamentally enhances its ability to improve the way the world works.