Allison Transmission Holdings Inc. has finalised its acquisition of the Off-Highway Drive & Motion Systems business from Dana Incorporated in a deal valued at approximately $2.7 billion. The transaction, originally announced in mid-2025, closed in early January 2026, creating a significantly enlarged industrial mobility group.
The acquired Dana off-highway unit, which specialises in drivetrain, propulsion and motion systems for sectors such as construction, mining, agriculture and industrial applications, operates in more than 25 countries and is supported by a workforce of around 11,000 employees.
As part of the integration, Allison will continue operating under its established brand name and run two primary business units — the traditional Allison Transmission division and the newly incorporated Allison Off-Highway Drive & Motion Systems division. The combined organisation is headquartered in Indianapolis, Indiana (USA), with leaders of both units reporting to Allison’s Chair, President and CEO.
The deal broadens Allison’s product portfolio beyond automatic transmissions for on-highway vehicles into diversified off-highway and industrial drivetrain markets. This strategic expansion is expected to enhance the company’s global reach across mobility, infrastructure and heavy-equipment segments.
Dana, in turn, plans to focus its efforts on core light- and commercial-vehicle propulsion systems following the divestiture of the off-highway business. The sale aligns with its broader restructuring strategy while providing significant resources to strengthen its balance sheet.
