Dana Incorporated sells Off-Highway business

Dana Incorporated has closed the sale of its Off-Highway business to Allison Transmission Holdings for $2.7 billion, an amount 7.5 times the Off-Highway’s expected 2025 adjusted EBITDA.

"Closing this transaction marks an important step in Dana's evolution," said R. Bruce McDonald, chairman and chief executive officer of Dana. "We are now a more focused company, dedicated to serving light- and commercial-vehicle customers with both traditional and electrified systems. This divestiture, combined with the successful execution of our cost-reduction plan, will strengthen our balance sheet, improve margins, reduce complexity, and position us to accelerate innovation and growth in our core markets."

Dana will use the proceeds from the sale to reduce its debt by $2 billion, as well as hit its target net leverage of 1x over the business cycle. They’ll also return $350 million to shareholders throughout 2027, totaling $1 billion back to shareholders from the sale.

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC served as Dana's financial advisors. Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel, and Ernst & Young LLP acted as transaction advisor.