Allison Transmission Completes Acquisition of Dana Incorporated's Off-Highway Drive & Motion Systems Business, Creating a Premier, Global Industrial Leader
Rhea-AI Summary
Allison Transmission (NYSE: ALSN) completed its acquisition of Dana Incorporated's Off-Highway Drive & Motion Systems business on Jan 2, 2026 for approximately $2.7 billion, creating a combined global enterprise with about $5.5 billion in revenue and operations in 29 countries.
The combined company will operate under the Allison name, be headquartered in Indianapolis, and comprise two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems, led by Fred Bohley and Craig Price respectively, both reporting to CEO David Graziosi. Barclays, BofA Securities, Citigroup and JPMorgan provided committed financing for the transaction.
Positive
- Combined revenue of $5.5 billion
- Operations spanning 29 countries
- Acquisition completed for approximately $2.7 billion
- Two business units with named leaders and clear reporting
Negative
- Transaction supported by committed financing from major banks
Key Figures
Market Reality Check
Peers on Argus
ALSN’s pre-news move of -1.02% occurred as key peers like MOD -1.82%, BWA -1.23%, GNTX -1.46%, ALV -1.17%, and LKQ -1.72% also traded lower, pointing to broader sector pressure.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Strategic partnerships | Positive | -1.4% | Expanded defense, mining and export partnerships and India growth initiatives. |
| Nov 19 | Regulatory approvals | Positive | +2.0% | All required regulatory approvals for Dana off-highway acquisition received. |
| Nov 10 | Dividend declaration | Positive | -1.0% | Declared Q4 2025 cash dividend of <b>$0.27</b> per share. |
| Nov 06 | Debt financing | Neutral | +0.6% | Priced <b>$500M</b> notes and <b>$1,200M</b> term loan to fund Dana acquisition. |
| Oct 29 | Q3 2025 earnings | Neutral | -0.6% | Reported Q3 net sales <b>$693M</b> and net income <b>$137M</b> with updated 2025 guidance. |
Recent positive strategic and capital allocation news has often seen mixed or negative immediate price reactions.
Over the last few months, Allison has focused on strategic growth and capital actions. The company announced the Dana off-highway acquisition for $2.7 billion, secured related debt financing of $500 million notes and a $1,200 million term loan, and continued shareholder returns via a $0.27 quarterly dividend. Q3 2025 results showed net sales of $693 million and net income of $137 million. Expansion in India and defense, mining and export partnerships highlight a push into global and off-highway markets, which this closing now formalizes.
Market Pulse Summary
This announcement formalizes Allison’s acquisition of Dana’s Off-Highway Drive & Motion Systems business, creating a $5.5 billion revenue enterprise operating in 29 countries. It caps a sequence of prior disclosures on the deal’s terms, financing and regulatory approvals. Investors may focus on integration progress, how the off-highway unit contributes to earnings versus past guidance, and whether the expanded footprint supports sustained growth across infrastructure, energy and industrial end markets.
AI-generated analysis. Not financial advice.
Combined company to form
Global footprint positioned to meet growing demand for advanced high-performance mobility and work solutions across infrastructure, energy, agriculture, construction and national security
"We are excited to welcome our new colleagues from Dana Incorporated's Off-Highway Drive & Motion Systems business to Allison," said David Graziosi, Allison Chair, President and CEO. "Together, we have an expanded market reach and broader portfolio of high-quality and reliable products, creating a global platform that will continue to deliver strong financial performance from both organic and inorganic growth. Our talented colleagues are dedicated to helping support our customers and their end users to better capitalize on the global megatrends shaping the modern industrial world."
The combined company will be headquartered in
BofA Securities and KPMG LLP served as Allison's financial and transaction advisors respectively, and Latham & Watkins LLP acted as legal advisor. Barclays, BofA Securities, Citigroup and JPMorgan provided committed financing in connection with the transaction. Edelman acted as Allison's strategic communications advisor.
About Allison Transmission Holdings, Inc.
Allison Transmission Holdings, Inc. (NYSE: ALSN) ("Allison") is a global leader in high-performance mobility and work solutions built for the needs of the modern industrial world. Enhanced by a track record of strategic acquisitions, Allison operates through two business units: Allison Transmission and Allison Off-Highway Drive & Motion Systems. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: we are expected to incur significant costs in connection with the integration of the Off-Highway Drive & Motion Systems business (the "Business") of Dana Incorporated; the Business and its operations may not be integrated successfully in the expected time frame; we may fail to realize all of the anticipated benefits from the integration of the Business and its operations or fail to effectively manage our expanded operations; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, natural disasters, extreme weather events, wars and public health crises such as pandemics; global economic volatility; general economic and industry conditions, including the risk of prolonged inflation and recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; cybersecurity risks to our operational systems, security systems or infrastructure owned by us or our third-party vendors and suppliers; the failure of markets outside
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SOURCE Allison Transmission, Inc.
FAQ
What did Allison Transmission (ALSN) announce on January 2, 2026?
How large is the combined company after the ALSN acquisition?
Where will Allison Transmission (ALSN) be headquartered after the Dana deal?
Who will lead Allison's business units after the acquisition of Dana's off-highway business?
How was the ALSN acquisition of Dana's business financed?
