June 29, 2007
GM sells Allison Transmission for US$5.6 billion
New York, New York – General Motors has announced it has reached a definite agreement to sell its Allison Transmission commercial and military business to The Carlyle Group and Onex Corporation for approximately US$5.6 billion.
The sale agreement covers substantially all of Allison, including seven manufacturing facilities in Indianapolis, Indiana, and its worldwide distribution network and sales offices. The production facility in Baltimore, Maryland, dedicated to the production of conventional and hybrid transmissions used in GM’s pickup trucks and SUVs, will remain with GM. The sale is expected to close in the third quarter of 2007.
“This is another important step to strengthen our liquidity and provide resources to support our heavy investments in new products and technology,” says Rick Wagoner, chairman and CEO of GM. “At the same time, this sale will position Allison for growth with strong partners in Carlyle and Onex, which have well-established track records of working effectively with their management teams, unions and employees.”