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In a move likened to merging supercharged engines mid-race, Allison Transmission Holdings Inc. has signed a high-octane agreement to acquire Dana Inc.'s off-highway division for $2.7 billion, a blockbuster deal set to redefine industrial propulsion worldwide.

The acquisition—steered by Latham & Watkins LLP on Allison’s side and Paul Weiss for Dana—is slated to close in the fourth quarter of 2025, pending regulatory green lights. It's more than a merger—it's a recalibration of the industrial drivetrain landscape.

A Global Expansion Fueled by Off-Road Ambitions

With this acquisition, Allison, the Indianapolis-based powerhouse known for its automatic transmissions and propulsion systems, aims to supercharge its footprint in construction, agriculture, mining, and forestry—industries that thrive off the beaten path.

“This acquisition marks a transformative milestone in our commitment to propulsion and drivetrain innovation,” said David Graziosi, Allison’s chair and CEO. “We’re not just buying a business—we’re buying the next chapter of how the world moves.”

Currently operating in over 150 countries, Allison will now absorb Dana’s off-highway division, which spans 25+ nations and employs around 11,000 workers. The unit specializes in axles, drivetrain components, and hybrid-electric propulsion systems, supporting a who’s who of off-road vehicle manufacturers.

Dana Refocuses While Allison Accelerates

For Dana Inc., a global leader in engineered driveline technologies, the divestiture signals a strategic pivot.

“Dana's off-highway business has long championed innovation, and in Allison’s hands, that legacy will not just survive—it will thrive,” said R. Bruce McDonald, Dana’s chair and CEO. “This allows us to sharpen focus on our core priorities.”

The deal is designed to be immediately accretive to Allison’s earnings per share and promises a $120 million annual savings boost, the company said. The transaction will be financed through a strategic mix of cash and debt.

Financial Firepower and Legal Heavyweights Behind the Wheel

The financial engines behind this high-stakes race are top-tier:

• BofA Securities is Allison’s financial adviser.

• Barclays, Citigroup, and BofA also lined up to provide committed financing.

• On Dana’s side, Goldman Sachs & Co. and Morgan Stanley & Co. are serving as financial advisers.

The Latham & Watkins LLP team navigating legal curves for Allison is led by partners Paul Sheridan and Daniel Breslin—names synonymous with megadeals. Paul Weiss Rifkind Wharton & Garrison LLP, with its reputation for precision, is guiding Dana.

From Assembly Lines to Global Dominance

This isn’t just a deal—it’s an industrial alliance built for scale and speed. By integrating Dana’s rugged engineering pedigree with Allison’s propulsion expertise, the companies aim to power a new era of productivity across terrains and continents.

As this $2.7 billion gearshift unfolds, Allison Transmission isn’t just acquiring a unit—it’s seizing a strategic lever to control the throttle of global industrial movement.