Dana Incorporated Announces Agreement to Sell Off-Highway Business for $2.7 Billion; $1 Billion Capital Return Authorization

Core Viewpoint - Dana Incorporated has reached a definitive agreement to sell its Off-Highway business to Allison Transmission Holdings for $2.7 billion, which is 7 times the expected 2025 adjusted EBITDA of the Off-Highway business [1][6]. Group 1: Transaction Details - The transaction is expected to close in late Q4 2025, pending regulatory approvals and closing conditions [1]. - Dana anticipates generating $2.4 billion in net cash proceeds after tax and other expenses, planning to repay approximately $2 billion of debt to achieve a target net leverage of about 1x over the business cycle [2]. Group 2: Strategic Implications - The sale supports Dana's strategy to become a streamlined supplier focused on light- and commercial-vehicle systems, both traditional and electrified [2]. - The transaction is expected to strengthen Dana's balance sheet and reduce business complexity, allowing for significant capital return to shareholders [2][6]. Group 3: Capital Return Program - Dana's board has authorized a $1 billion capital return program through 2027, with $550 million to be returned to shareholders at or before the closing of the Off-Highway business sale [3][6]. Group 4: Company Overview - Dana reported sales of $10.3 billion in 2024 and employs 39,000 people across 30 countries [11]. - The company is recognized for its ethical practices and responsible operations, being named among the "World's Most Ethical Companies" and "America's Most Responsible Companies" for 2025 [11].