Allison Enters Asset Purchase Agreement With India-Based AVTEC

Allison Transmission Holdings Inc ALSN has agreed to acquire the transmission portfolio of India-based AVTEC Ltd's off-highway business and Madras Export Processing Zone (MEPZ) off-highway component machining business.
AVTEC, a part of CK Birla Group, is an independent manufacturer of powertrain and precision-engineered products.
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 deal is expected to close by the end of 2021.
Allison will integrate AVTEC's off-highway component machining operations at the MEPZ facility (Chennai) into its Chennai manufacturing plant to continue producing housings for its off-highway transmissions.
Allison held $238 million in cash and equivalents as of June 30, 2021.
Price Action: ALSN shares traded lower by 1.69% at $36.13 on the last check Thursday.