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GM Completes Allison Transmission Sale

Allison Transmission commercial and military business sold to Carlyle Group and Onex Corp. for $5.6 billion.

DETROIT (AP) - General Motors Corp. said Tuesday it has completed the sale of its Allison Transmission commercial and military business to The Carlyle Group and Onex Corp. for $5.6 billion.
 
The sale, announced in June, includes seven manufacturing plants in Indianapolis and its global distribution network and sales offices. A production facility in Baltimore, which produces conventional and hybrid transmissions for pickup trucks and sport utility vehicles, will remain with GM.
 
Detroit-based GM said in a statement that it would use the money to strengthen its liquidity and support investments in new products and technology.
 
Indianapolis-based Allison designs and builds commercial-duty automatic transmissions, hybrid propulsion systems and parts for trucks and buses, off-highway equipment and military vehicles. The company boasts an 80 percent market share of all medium- and heavy-duty commercial transmissions, with annual revenue of more than $2 billion.
 
The Carlyle Group is a Washington, D.C.-based private equity firm. Onex Corp. is a Toronto-based investment conglomerate. The two will be equal partners in the deal.
 
GM shares rose $1.03, or 3.2 percent, to $33.48 Tuesday.