Dana to sell Off-Highway business to Allison Transmission for $2.7B

Dana (DAN) announced that it has reached a definitive agreement to sell its Off-Highway business to Allison Transmission Holdings (ALSN) for $2.7B. This represents 7x the expected 2025 adjusted EBITDA of the Off-Highway business. The transaction, which is subject to customary regulatory approvals and closing conditions, is projected to close late in the fourth quarter of 2025. Following the successful close of the transaction, Dana expects to generate $2.4B of net cash proceeds after tax, other transaction expenses, and assumed liabilities. Dana plans to repay approximately $2B of debt to achieve target net leverage of approximately 1x over the business cycle. Additionally, the Dana board of directors has authorized a $1B capital return program through 2027 with $550M of capital return to shareholders at or before closing of the transaction.