Allison Transmission (ALSN) to Acquire AVTEC’s Off-Highway Transmission Portfolio and Off-Highway Component Machining Business for $27M Cash
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Allison Transmission (NYSE: ALSN) a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles, is pleased to announce that it has signed an asset purchase agreement to acquire the transmission portfolio of India-based AVTEC Ltd.’s off-highway business and AVTEC’s Madras Export Processing Zone (MEPZ) off-highway component machining business.
Headquartered in New Delhi and part of the CK Birla Group, AVTEC is one of India’s largest independent manufacturers of powertrain and precision-engineered products for automotive, off-highway, defense, agriculture and railway industry, in areas of both proprietary products and contract manufacturing.
“The acquisition of the transmission portfolio of AVTEC’s off-highway business and associated IP will accelerate Allison’s pursuit of additional opportunities in these segments in India and global markets with purpose-built products that deliver performance and productivity to our customers,” said John Coll, Senior Vice President, Global Marketing, Sales and Service at Allison Transmission.
With this acquisition, Allison will also integrate AVTEC’s off-highway component machining operations currently located at the MEPZ facility (Chennai) into Allison’s Chennai manufacturing plant to continue producing housings for Allison’s off-highway transmissions. “This acquisition supports our overarching sourcing and operations strategies,” said Mike Dick, Senior Vice President of Operations and Global Purchasing at Allison Transmission.
Allison will pay approximately $27 million in cash for AVTEC’s off-highway transmission portfolio and MEPZ off-highway component machining assets. Allison does not expect the acquisition to have a material impact on current fiscal year earnings. The transaction is subject to completion of certain conditions precedent and is anticipated to close by the end of 2021.
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