Meritor Inc. announced it has entered into an agreement with Siemens to acquire its Commercial Vehicles business for approximately €190 million (US$200.6 million) in cash, adjusted for changes in working capital at closing.
The transaction is expected to close by calendar year-end, subject to regulatory approvals and customary closing conditions.
“The Siemens Commercial Vehicles business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market,” says Meritor CEO and President Chris Villavarayan. “As the urgency grows for zero carbon solutions, this highly talented and skilled team, and leading electric product portfolio, strengthens Meritor’s business as we move toward the anticipated acquisition by Cummins.”
“Commercial Vehicles is another success story for value creation through our portfolio companies concept. We have turned it into a profitable business and now found the ideal new strategic owner,” says Ralf P. Thomas, chief financial officer, Siemens AG.
With approximately 200 employees across Germany, China and the United States, the Siemens Commercial Vehicles business develops, designs and produces high-performance electric drive systems. Product offerings include direct drive and transmission-based remote mount electric motors, inverters, software and related services which Meritor expects to be critical elements in the next generation of electric powertrains. These capabilities will enable Meritor to offer global customers a wider array of electrified product solutions across the commercial vehicle, transit, off-highway and specialty markets, the company says.
In accordance with the terms of the previously announced merger agreement under which Cummins agreed to acquire Meritor, Cummins consented to and is supportive of Meritor entering into the agreement and completing its acquisition of the Siemens Commercial Vehicles business.