Cummins on Wednesday announced it has completed its acquisition of Meritor.
The $3.7 billion deal announced in February includes the integration of Meritor’s people, products and capabilities in axle and brake technology into Cummins’ components business.
Cummins states it expects to utilize its global footprint to accelerate the growth of the core axle and brake businesses by serving commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world and the combination of the two companies will position Cummins as a leading provider of integrated powertrain solutions across internal combustion and electric power applications.
[RELATED: Meritor reports $1.21 billion in Q3 sales]
Cummins intends to deliver market-leading decarbonized solutions to global customers by accelerating Meritor’s investment in electrification and integrating development within its New Power business, the company says.
“We are excited to welcome Meritor’s employees into Cummins,” says Jennifer Rumsey, Cummins’ president and CEO. “Together, Cummins and Meritor will move further and faster in developing economically viable decarbonized powertrain solutions that are better for people and our planet.”
Cummins’ Executive Chairman Tom Linebarger noted Cummins can help grow Meritor’s core business given its sales and service network and customer relationships around the world, "and this acquisition has clear synergies for both companies that will position us for future investments during our industry’s technology transition," he said.
"We are relentless in our focus on Destination Zero, our company strategy to achieve net-zero emissions, and will lead in the transition to decarbonized power. This acquisition is an important step in executing on our strategy.”