Carlyle, Onex Come to Full Stop on Allison Holding
September 11, 2014
The Carlyle Group and Onex have sold their remaining stakes, 2.7 million shares apiece, in Allison Transmission (NYSE: ALSN), a manufacturer of fully automatic transmissions and hybrid propulsion systems for commercial-duty vehicles. The firms had acquired Allison in a $5.6 billion carveout from General Motors in 2007, then took the company public in 2012, followed by multiple secondary transactions to reduce their stakes. Over the seven-year holding period, Onex reported aggregate proceeds of roughly $2.4 billion, resulting in a multiple of capital invested of 3.2x and a return on investment of 21% per annum. Onex’s share of the cumulative proceeds is $770 million, including carried interest of $51 million.