Allison Transmission Holdings Inc. (NYSE: ALSN) is paying $103 million to acquire two suppliers of critical components to its automatic transmissions, the company said Monday, Sept. 9.
Walker Die Casting Inc., located in Lewisburg, TN, has supplied aluminum castings to Allison’s core on-highway transmissions for 20 years. The family-owned business put itself up for sale and found a willing buyer in Allison.
“We plan to grow the business and continue the heritage established by Robert Walker in 1958,” said Allison Transmission President and CEO David S. Graziosi. “Walker’s products are a critical component in the manufacture and quality of our on-highway transmissions.”
Allison is the world’s largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles. They are used in refuse, construction, fire, distribution, buses, motorhomes, defense and energy applications.
“While it is always hard to let go of the business you built, we are proud that it will remain in good hands with Allison Transmission,” said John Walker, Walker Die Casting president and son of the founder.
Allison said it also is committed to sustaining C&R Tool and Engineering Inc. of Muscle Shoals, AL, which makes metalworking tools for Walker and other companies.
Walker and C&R, founded in 1956, will be run as Allison Transmission plants and continue to operate in their respective locations.
Allison said it does not expect the acquisitions to materially impact current fiscal year earnings.
