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Allison Closes $2.7 Billion Purchase of Dana's Off-Highway Unit

Dana plans debt reduction alongside increased shareholder returns.

Overview

  • Allison said the combination creates a roughly $5.5 billion revenue enterprise with operations in 29 countries.
  • The company will operate under the Allison name from Indianapolis and be organized into two business units led by Fred Bohley and Craig Price under CEO David Graziosi.
  • Dana reported the sale valued the business at 7.5 times expected 2025 adjusted EBITDA.
  • Dana expects to reduce debt by about $2 billion and targets $1 billion in shareholder returns through 2027, including roughly $650 million already distributed.
  • Allison cited committed financing from Barclays, BofA Securities, Citigroup and JPMorgan, and both companies cautioned about integration, market and execution risks.