General Motors Corp has reached a definitive agreement to sell its Allison Transmission commercial and military business to The Carlyle Group and Onex Corp for about $5.6 billion.
The sale agreement covers substantially all of Allison, including seven manufacturing facilities in Indianapolis IN, and its worldwide distribution network and sales offices. The production facility in Baltimore MD is dedicated to production of conventional and hybrid 2MODE transmissions used in GM's retail pickup trucks and SUVs. It will remain with GM.
The transaction is structured to preserve GM's and Allison's competitive strengths in their respective product lines. It is expected to close as early as the third quarter of this year pending union and regulatory approval.
GM employs about 280,000 people around the world. With global headquarters in Detroit MI, it manufactures its cars and trucks in 33 nations.
Allison employs approximately 3,400 people, has seven plants in Indianapolis, and sells its transmissions through a distribution network with sales offices in North America, South America, Europe, Africa, and Asia.