Transmissions sold

The Carlyle Group and Onex Corporation have reached an agreement to acquire Allison Transmission from General Motors for $5.575bn.

Allison Transmission designs and manufactures automatic transmissions for on-highway trucks and buses, off-highway equipment and military vehicles worldwide.

The company, based in Speedway, Indiana, employs 3,400 people and sells its transmissions through a worldwide distribution network and sales offices in North America, South America, Europe, Africa and Asia. Allison Transmission generates annual revenues of in excess of $2bn.

The sale agreement covers substantially all of Allison Transmission, including seven manufacturing facilities in Indianapolis, Indiana and its worldwide distribution network and sales offices.

A production facility in Baltimore, Maryland that is dedicated to the production of conventional and hybrid 2MODE transmissions used in General Motors’ retail pick-up trucks and SUVs will remain with General Motors.

Lawrence E. Dewey, currently Allison’s President, will become the new Chief Executive Officer of Allison Transmission.

The transaction is subject to customary regulatory approvals and closing is anticipated in the third quarter of 2007.