Dana Incorporated Finalizes Sale of Off-Highway Division
Dana Incorporated has successfully completed the sale of its Off-Highway Division to Allison Transmission Holdings for $2.7 billion. This pivotal transaction, valued at 7.5 times the expected adjusted EBITDA for 2025, is a significant step in Dana’s transformation strategy.
Details of the Sale
The divestiture is intended to streamline Dana’s focus towards light- and commercial-vehicle customers. R. Bruce McDonald, Dana’s Chairman and CEO, emphasized that this move will enhance the company’s competitive edge and financial stability.
Financial Implications
- The sale proceeds will allow Dana to reduce its debt by approximately $2 billion.
- This aligns with Dana’s target of achieving a net leverage ratio of 1x over the business cycle.
- Additionally, Dana plans to return $1 billion to shareholders by 2027.
Of this amount, around $650 million has already been returned since the announcement of the transaction, which is an increase of $50 million from previous targets.
Appreciation for Off-Highway Employees
Dana expressed its gratitude to the employees of the Off-Highway Division, acknowledging their role in building a world-class organization. The company is confident that the team will continue to thrive under Allison’s leadership.
Advisory Roles
Goldman Sachs & Co. and Morgan Stanley served as financial advisors for Dana during this transaction. Legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Ernst & Young acted as transaction advisor.
About Dana Incorporated
Based in Maumee, Ohio, Dana specializes in the design and manufacture of efficient propulsion and energy-management solutions. In 2024, the company reported sales of approximately $7.7 billion and employs 28,000 people worldwide.
Dana has a history that dates back to 1904, and it has been recognized as one of the “World’s Most Ethical Companies” for 2025. The company is committed to sustainable progress and innovation in the automotive industry.
