Allison Transmission is paying $27 million in cash to acquire the Avtec Ltd. off-highway transmission portfolio and MEPZ off-highway component machining assets in India and will consolidate the latter with its own Chennai manufacturing plant, to continue producing housings for Allison’s off-highway transmissions.
“This acquisition supports our overarching sourcing and operations strategies,” stated Mike Dick, Allison Transmission’s SVP-Operations and Global Purchasing.
Indianapolis-based Allison Transmission designs and manufactures commercial- and defense-vehicle propulsion systems and calls itself the largest global manufacturer of medium- and heavy-duty fully automatic transmissions.
Avtec Ltd. is part of the CK Birla Group and one of India’s largest independent manufacturers of powertrain and other products for automotive, off-highway, defense, agriculture and railway 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,” stated John Coll, SVP - Global Marketing, Sales and Service.
The transaction will close by the end of this year, subject to certain conditions, according to the buyer.
