GM to sell Allison Transmission to The Carlyle Group and Onex
|
|
 Furl It |
General Motors has reached a definitive agreement to sell its $2bn-turnover Allison Transmission commercial and military business to The Carlyle Group (Carlyle) and Onex Corporation (Onex) for approximately $5.6 billion.
The sale covers includes nearly all of the Allison business, including seven manufacturing facilities in Indianapolis and its worldwide distribution network and sales offices, but the production facility in Baltimore dedicated to transmissions used in GM’s pick-up trucks and SUVs will remain with GM. The transaction is expected to be completed as early as the third quarter of this year pending union and regulatory approval.
“This is another important step to strengthen our liquidity,” said Rick Wagoner, GM chairman and CEO.
Seth Mersky, managing director of Onex said, “We believe Allison is poised for excellent growth in its sector with the increasing rate of adoption of automatic transmissions in commercial vehicles both in North America and abroad.”
GM’s stock rose in trading on the NYSE following the announcement.
angelfa said,
June 30, 2007 @ 12:43 am
General Motors makers of excellent auto parts such as GMC yukon partsetc…, I believe, at this point is most sought after by enthusiasts when it comes to auto parts maintenance and quality.