Torotrak is pleased to announce that, on 16 March 2009, the company concluded a licence and exclusivity agreement with Allison Transmission, Inc. - the world leader in fully automatic transmissions for the commercial vehicle sector. In addition, Allison will acquire a stake in the company by way of a strategic shareholding, making it Torotrak’s largest shareholder.
Under the terms of the Agreement, Allison has purchased initial licence rights valued at approximately £8.44 million. In addition, Allison has paid approximately £2.41 million for 14,608,290 new ordinary shares in Torotrak, representing approximately 10% of the Company’s previously issued ordinary share capital.
Dick Elsy, Torotrak's Chief Executive, said: “This is the most significant endorsement of our technology thus far. Allison is the world leader in commercial vehicle transmissions and the Agreement provides us with access to large production volumes in this high value sector. Despite the economic crisis worldwide, more interest is being shown by forward-thinking companies in our technology than ever before due to the growing global focus on fuel efficiency and cost. This interest is being turned into value for our shareholders under agreements such as that announced today.”
Lawrence E. Dewey, Allison’s Chairman and CEO, added: “We are excited about working with Torotrak to incorporate their unique technology into a new family of products that will offer our customers around the world new features and benefits.”
The full press release is available by clicking here.
