Dana Incorporated completed the sale of its Off-Highway business to Allison Transmission Holdings, Inc. for $2.7 billion. This strategic move is a significant milestone in Dana's transformation journey towards a more focused company. The sale will strengthen Dana's balance sheet, improve margins, and position it for innovation and growth.
The sale of the Off-Highway business to Allison Transmission Holdings, Inc. for $2.7 billion has been successfully concluded, representing a key part of Dana's transformation strategy to focus on light- and commercial-vehicle customers. The proceeds will reduce Dana's debt by $2 billion, target net leverage of 1x, and include returning $1 billion to shareholders by 2027.
Sale Completion to Allison
The sale of the Off-Highway business to Allison Transmission Holdings, Inc. for $2.7 billion has been successfully concluded.
Transformation Strategy
The sale represents a key part of Dana's transformation strategy to focus on light- and commercial-vehicle customers.
Financial Impact
The proceeds will reduce Dana's debt by $2 billion, target net leverage of 1x, and include returning $1 billion to shareholders by 2027.
- The sale will allow Dana to be a more focused company dedicated to traditional and electrified systems for vehicle customers. By reducing debt and improving margins, Dana aims to accelerate innovation and growth in their core markets. Appreciation expressed towards Off-Highway business employees for their contributions towards building a strong organization.
Closing this transaction marks a significant step in Dana's evolution, strengthening its position in the automotive industry. The strategic move aligns with Dana's commitment to enhancing shareholder value and pursuing innovation.