Allison Transmission to Purchase AVTEC Portfolio
(undated photo courtesy of Allison Transmission)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Allison Transmission has signed an asset purchase agreement to buy portions of India-based AVTEC Ltd.’s off-highway business and the company’s component machining business. Allison says the cash deal is valued at $27 million.
The deal is for AVTEC’s off-highway transmission portfolio and MEPZ off-highway machining assets. Allison says AVTEC is headquartered in New Delhi and is part of the CK Birla Group.
“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,” said John Coll, Senior Vice President, Global Marketing, Sales and Service at Allison Transmission.
Allison says it will also integrate AVTEC’s maching operations currently located in the company’s Chennai, India facility into Allison’s Chennai manufacturing plant to produce housings for off-highway transmissions.
“This acquisition supports our overarching sourcing and operations strategies,” said Mike Dick, Senior Vice President of Operations and Global Purchasing at Allison Transmission.
Allison says the transaction is subject to certain conditions and is expected to close by the end of the year.