Dana Finalizes $2.7 Billion Off-Highway Asset Sale to Allison Transmission
Maumee, Friday, 2 January 2026.
This $2.7 billion transaction values the segment at 7.5 times earnings, enabling Dana to slash debt by $2 billion while pivoting focus to core automotive technologies.
Strategic Realignment and Financial Impact
Dana Incorporated (NYSE: DAN) announced the completion of this major divestiture today, January 2, 2026, transferring the business to Allison Transmission Holdings, Inc. (NYSE: ALSN) [1][2]. The final transaction price of $2.7 billion reflects a valuation of 7.5 times the division’s anticipated adjusted EBITDA for 2025 [1]. This valuation metric underscores the premium placed on the specialized off-highway assets within the broader industrial machinery market.
Creating a Global Industrial Leader
The acquisition significantly scales Allison Transmission’s operational footprint. Headquartered in Indianapolis, the combined enterprise aims for $5.5 billion in total revenue, with a presence extending across 29 countries [2]. The integrated company will operate through two primary business units: Allison Transmission, under the leadership of Fred Bohley, and the newly formed Allison Off-Highway Drive & Motion Systems, led by Craig Price [2].
Advisors and Transaction Details
The complex transaction was facilitated by prominent financial and legal institutions. Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as financial advisors to Dana, with legal counsel provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP [1]. On the buy-side, BofA Securities and KPMG LLP advised Allison, while committed financing was secured through a consortium including Barclays, Citigroup, and JPMorgan [2].