Dana sells off-highway business to Allison Transmission for $2.7 billion (updated)

Allison Transmission Holdings

11/06/2025 21:46

Adds details of transaction throughout

June 11 (Reuters) - Dana DAN.N will sell its off-highway business to Allison Transmission ALSN.N for $2.7 billion, the auto parts makers said on Wednesday.

Shares of the Maumee, Ohio-based Dana rose 7% after the bell. Its board authorized a $1 billion capital return program through 2027 with shareholders set to receive $550 million at or before the transaction closes. Allison's stock fell 1.9%.

The off-highway unit makes mobile drivetrain and motion systems for heavy-duty vehicles used in construction, agriculture, material handling, mining, forestry and industrial applications.

Dana had announced plans to sell the business in November as part of a cost-cutting drive to navigate macroeconomic pressures and to simplify its business.

"The sale of the Off-Highway business supports our strategy to become a streamlined light- and commercial-vehicle supplier with traditional and electrified systems," Dana CEO Bruce McDonald said in a statement.

The transaction, set to close late in the fourth quarter, is expected to generate $2.4 billion of net proceeds.

The off-highway unit accounted for nearly 27% of Dana's total revenue of $10.28 billion in 2024.

Goldman Sachs and Morgan Stanley are financial advisers to Dana, while BofA Securities is advising Allison.

 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Sahal Muhammed)

 ((Aatreyee.Dasgupta@thomsonreuters.com;))