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Allison Transmission to Acquire AVTEC´s Off-Highway Transmission Portfolio and Off-Highway Component Machining Business for USD 27m
Friday 17 September 2021

Indianapolis, US-based electrified vehicle propulsion solutions provider Allison Transmission 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 off-highway component machining business, the company said.

Allison will pay approximately USD 27m 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.

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.

With this acquisition, Allison will 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.

Allison Transmission (NYSE: ALSN) is a designer and manufacturer of vehicle propulsion solutions for commercial and defense vehicles, the largest global manufacturer of medium- and heavy-duty fully automatic transmissions, and a leader in electrified propulsion systems.
Date Published: 17/09/2021