Allison Transmission To Acquire India-Based AVTEC’s Off-Highway Transmission Portfolio

Allison Transmission Acquires Assets Of India-Based AVTEC

The company will acquire AVTEC’s off-highway business and off-highway component machining business.

Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles, 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 (MEPZ) off-highway component machining business.

Headquartered in New Delhi and 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.

“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.

With this acquisition, Allison also 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. “This acquisition supports our overarching sourcing and operations strategies,” said Mike Dick, senior vice president of Operations and Global Purchasing at Allison Transmission.

Allison will pay approximately $27 million 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.

You May Also Like

Study: Indian Auto Aftermarket Expected to Reach $14B by 2028

The report by the Automotive Component Manufacturers Association and Ernst & Young shows an over $35 billion export opportunity for India.

India-Auto-aftermarket

The automotive aftermarket in India is anticipated to reach approximately $14 billion by 2028, according to a Global Automotive Aftermarket Research Report by the Automotive Component Manufacturers Association (ACMA) in collaboration with Ernst & Young (EY). The study, covering 39 countries across six continents, indicates that the global aftermarket represents an export opportunity of over $35 billion for India.

Valvoline Global Launches Mechanics Month Campaign

The 5th-annual campaign is designed to support and celebrate the value of mechanics around the world.

Valvoline Global Operations Launches Mechanics Month Campaign
Automechanika, Frost & Sullivan Form New Partnership

The strategic alliance will deliver a continuous flow of valuable content at Automechanika’s worldwide trade fairs.

Automechanika, Frost & Sullivan Form New Partnership
Dana Sells European Hydraulics Business

It has been sold to HPI Group, a hydraulics business jointly held by Apogee Group and EiM Capital.

Dana Sells European Hydraulics Business
Valeo Joins Data Exchange with Industry Partners

Data4Industry-X seeks to accelerate digital transformation in manufacturing while adhering to European data regulations.

Data-4-Industry-X

Other Posts

Titan International, Inc. Acquires Carlstar Group LLC

The acquisition is expected to enhance Titan’s customer relationships and diversify its product portfolio.

automotive aftermarket M&A
Allison Ventures Makes Strategic Investment in Niron Magnetics

Sustainable non-rare earth permanent magnets for integration in EV propulsion motors and renewable energy systems will be developed.

Allison Ventures Makes Strategic Investment in Niron Magnetics
Cloyes Gear & Products Acquires Automotive Tensioners Inc.

The partnership aims to deliver an improved and cohesive timing system solution to modern automotive repair shops, Cloyes said.

Forvia Reports FY 2023 Results After HELLA Acquisition

The company reported synergies with HELLA, with cumulative net cost synergies reaching over $200 million by the end of 2023.