US-based Allison Transmission will boost its exposure to off-highway vehicle propulsion markets such as mining, construction and agriculture through its proposed US$2.7 billion acquisition of Dana’s off-highway business.
Construction, forestry and agriculture sales made up more than half Dana’s $2.8 billion off-highway revenues last year. Mining weighed in with circa-$170 million, or about 6% of Dana’s total off-highway business.
Off-highway, including mining, contributed only about 3%, or $105 million, of Allison’s $3.2 billion 2024 sales, with domestic on-highway segments dominant. The company said earlier this year the wide-body mining dump truck market, particularly in China, India, Indonesia and parts of South America and Africa, “represents [a] growth opportunity of $100 million in incremental annual revenue”.
Construction, agriculture and mining were depicted as potential growth markets for a combined nominal $6 billion-a-year group generating $1.6-1.7 billion of adjusted EBITDA. Dana’s international market exposure (EMEA 49%, Asia Pacific 21%, Americas 20%) will expand Allison’s global footprint.
Allison’s acquisition price is seven-times the projected 2025 adjusted EBITDA of Dana’s off-highway business. The deal, approved by both companies’ boards, could close in the fourth quarter of 2025.
“This acquisition marks a transformative milestone in our commitment to empowering our current and future customers with propulsion and drivetrain solutions that improve the way the world works,” said Allison CEO David Graziosi.
Indiana-based Allison was founded in 1915.
The New York Stock Exchange-listed company’s share price has drifted about 5% lower so far in 2025, giving it a current market value of about $8.62 billion.
