Allison Transmission, manufacturer of conventional and electrified vehicle propulsion solutions, on September 16 announced the signing of an asset purchase agreement to acquire the transmission portfolio of India-based AVTEC Ltd.’s off-highway business and AVTEC’s Madras Export Processing Zone (MEPZ) off-highway component machining business.
Headquartered in New Delhi and part of the CK Birla Group, AVTEC is one of India’s largest independent manufacturers of powertrain and precision-engineered products for automotive, off-highway, defence, agriculture and railway industry.
“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 Mr John Coll, Senior Vice-President, Global Marketing, Sales and Service at Allison Transmission.
With this acquisition, Allison will also integrate AVTEC’s off-highway component machining operations currently located at the MEPZ facility (Chennai) into Allison’s Chennai manufacturing plant to continue producing housings for Allison’s off-highway transmissions.
“This acquisition supports our overarching sourcing and operations strategies” said Mr Mike Dick, Senior Vice-President of Operations and Global Purchasing at Allison Transmission.
Allison will pay approximately $27 million in cash for AVTEC’s off-highway transmission portfolio and MEPZ off-highway component machining assets.