Allison Transmission acquired AVTEC Ltd.’s off-highway business transmission portfolio in a recent deal, as well as its component machining business, Madras Export Processing Zone.
The transaction will be complete by the end of the year.
“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 Allison Transmission Senior Vice President of Global Marketing John Coll.
The company, based in Indianapolis, is set to invest $27 million as part of the deal. It does not expect the purchase to make a significant impact on its current fiscal year earnings, according to a press release.
With this acquisition, the independent manufacturer of powertrain and precision-engineered products for automotive, off-highway, and defense, among other aspects of the railway industry, will also integrate AVTEC’s off-highway component machining operations being implemented at the MEPZ facility into Allison’s plant to ensure the continuation of producing housings for its off-highway transmissions.