In a move that it said will boost its global footprint and give it operations in 29 countries, Allison Transmission Holdings said it has wrapped up its acquisition of the off-highway drive and motion systems business division in a US$2.7 billion deal.
Allison’s takeover of the drivetrain and propulsion solutions provider, it said, will accelerate its growth and add breadth to its worldwide presence for commercial-duty mobility and work solutions.
The combined company will be headquartered in Indianapolis, Ind., and will be headed up by Allison Chair, President and CEO David Graziosi.
The company will operate under the Allison name and be comprised of two business units. Allison Transmission will be led by Fred Bohley, President and Business Unit Leader, and Allison Off-Highway Drive and Motion Systems will be led by Craig Price, President and Business Unit Leader. Both Bohley and Price will report to Graziosi, and Bohley will continue to serve as Allison’s Chief Operating Officer.
“Together, we have an expanded market reach and broader portfolio of high-quality and reliable products, creating a global platform that will continue to deliver strong financial performance from both organic and inorganic growth,” said Graziosi. “Our talented colleagues are dedicated to helping support our customers and their end users to better capitalize on the global megatrends shaping the modern industrial world.”
BofA Securities and KPMG served as Allison’s financial and transaction advisors, respectively, and Latham & Watkins acted as legal advisor. Barclays, BofA Securities, Citigroup and JPMorgan provided committed financing in connection with the transaction.
In addition to mining, Allison’s business channels include construction, defense, oil and gas, fire and emergency, and agriculture.
Source: Allison Transmission