Allison To Be Sold To Carlyle, Onex
Posted on June 28, 2007
General Motors Corp. said it has reached a definitive agreement to sell its Allison Transmission commercial and military business to The Carlyle Group and Onex Corp. for approximately $5.6 billion.
The sale agreement covers substantially all of Allison Transmission, including seven manufacturing facilities in Indianapolis, Ind. and its worldwide distribution network and sales offices. The production facility in Baltimore, Md. will remain with GM. The transaction expected to close by the third quarter of this year pending union and regulatory approval.
Seth Mersky, managing director of Onex said, "We believe Allison is poised for excellent growth in its sector with the increasing rate of adoption of automatic transmissions in commercial vehicles both in North America and abroad."
Headquartered in Indianapolis, Indiana, Allison Transmission employs approximately 3400 people, has seven plants in Indianapolis and sells its transmissions through a worldwide distribution network with sales offices in North America, South America, Europe, Africa and Asia. The company generates annual revenues in excess of $2 billion.
The Carlyle Group is a global private equity firm with $58.5 billion under management. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Asia, Europe and North America. Onex Corp. is one of Canada's largest corporations with businesses that generate annual revenues of C$30 billion and have 184,000 employees worldwide. The company makes private equity investments through its Onex Partners and ONCAP family of Funds.