D.C.-based Carlyle Group and Toronto’s Onex Corp. have purchased a General Motors-owned transmission operation for $5.6 billion.
The companies bought GM’s Allison Transmission, a Speedway, Ind.-based firm. Under the agreement, the investment firms would take control of the company’s seven manufacturing facilities in Indiana and other assets. Allison employs 3,400 people and generates annual revenue of more than $2 billion. It produces transmissions for trucks, buses and military vehicles. GM will maintain control of Allison’s manufacturing plant in Baltimore.
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“We are excited to partner with Onex, the Allison management team and employees as we grow this iconic brand and support its transition to a stand-alone business,” Carlyle Managing Director Greg Letford said in a statement Thursday.
The transaction is expected to close in the third quarter of this year.
The move is one of several the automotive company has made to raise cash to fund job cuts and plant closings. Executives had announced in January they were looking to sell Allison.
