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Carlyle Group and Onex pick up Allison Transmission from GM29/06/2007. Source: AltAssets. 
 General Motors has reached an agreement for the company to sell on its Allison Transmission commercial and military business to The Carlyle Group and Onex Corporation for approximately $5.6bn.
This sale agreement covers substantially all of Allison Transmission, including seven manufacturing facilities in Indianapolis, and their worldwide distribution network and sales offices. The production facility in Baltimore, Md. is dedicated to the production of conventional and hybrid 2MODE transmissions used in GM's retail pick-up trucks and SUVs and will remain with GM.
'This is another important step to strengthen our liquidity and provide resources to support our heavy investments in new products and technology,' said Rick Wagoner, GM chairman and CEO. '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.'
Carlyle managing director Greg Ledford added, 'We are excited to partner with Onex, the Allison management team and employees as we grow this iconic brand and support its transition to a stand-alone business.'
Allison Transmission is a designer and manufacturer of automatic transmissions for medium and heavy duty commercial vehicles. Its products are used in on-highway, off-highway and vehicles. Headquartered in Indianapolis, Indiana, Allison Transmission employs approximately 3,400 people, has seven plants in Indianapolis and sells its transmissions through a worldwide distribution network with sales offices in North America, South America, Europe, Africa and Asia. The company generates annual revenues of $2bn.
The Carlyle Group is a private equity firm with $58.5bn under management. Carlyle invests in buy-outs, venture and growth capital, real estate and leveraged finance in Asia, Europe and North America.
Onex Corporation is a listed Canadian corporation with businesses that generate annual revenues of C$30bn and have 184,000 employees worldwide. The company makes private equity investments through its Onex Partners and ONCAP family of funds. Since its inception in 1983, Onex has invested approximately C$8bn of equity in a variety of industries, including electronics manufacturing services, aerospace, healthcare, financial services, automotive, metal services, customer support services, transportation and logistics, theatre exhibition, consumer products and communications infrastructure.
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