Allison Transmission Holdings Inc 8-K

What Happened

• Allison Transmission Holdings, Inc. announced it completed the acquisition of Dana Incorporated’s off‑highway business on January 1, 2026 for a purchase price of $2.732 billion (subject to adjustments) under the previously disclosed June 11, 2025 Stock Purchase Agreement.
• On January 2, 2026 the company, its subsidiary borrower and lenders entered into Amendment No. 5 to the Credit Agreement: the revolving credit facility was increased from $750 million to $1.0 billion (maturity extended from March 13, 2029 to January 2, 2031), and an incremental term loan facility of $1.2 billion was added (maturing January 2, 2033). The borrowings will fund part of the Acquisition, related fees/costs, working capital and other permitted corporate uses. The company also issued a press release announcing the closing.

Key Details

• Acquisition closed January 1, 2026; purchase price $2.732 billion (subject to adjustments).
• Revolving credit increased to $1.0 billion; revolver maturity extended to January 2, 2031 (from $750M and March 13, 2029).
• Incremental term loan facility of $1.2 billion added; maturity January 2, 2033 (with a springing maturity feature tied to the existing term loan).
• Leadership: Craig M. Price named President and Business Unit Leader, Allison Off‑Highway Drive and Motion Systems, effective January 1, 2026; employment pay: £423,530 base salary, £18,000 car allowance, incentive target 100% of base, LTIP target 200% of base, plus an RSU award ~ $1,000,000 (vesting over 3 years).

Why It Matters

• The acquisition expands Allison’s product and market exposure into off‑highway drive and motion systems, which can diversify revenue streams and strategic capabilities.
• The company increased and extended committed credit and added $1.2B of term debt to finance the deal — this improves near‑term liquidity but increases leverage and interest obligations. Investors should watch upcoming balance‑sheet and cash‑flow impacts (debt levels, interest expense, integration costs) in future filings and quarterly reports.
• Management has installed leadership for the new business and provided compensation and retention incentives (RSUs and severance protections) to support integration and continuity.