Meritor Selling Stake in Joint Venture to Wabco
Advanced safety systems were one offering of the Meritor Wabco joint venture. Photo: Meritor Wabco
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Advanced safety systems were one offering of the Meritor Wabco joint venture. Photo: Meritor Wabco
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Wabco Holdings Inc. is expanding its operations in North America by taking full ownership of the Meritor Wabco joint venture.
Wabco announced Monday that it has signed an agreement to Meritor’s stake in the joint venture business for $250 million. The transaction is expected to close on October 1.
Meritor Wabco, employing about 200 people, is headquartered in Troy, Michigan, and had sales of $300 million in fiscal year 2016. It currently sells and distributes a range of Wabco’s safety and efficiency technologies for commercial vehicles in North America.
The agreement to take full control of the joint-venture business will enable Wabco to offer, all under the Wabco brand, its consolidated portfolio of products and systems, including wheel-end solutions, air disc brakes, autonomous braking, electronic stability and active steering control systems, alongside advanced driver assistance systems (ADAS) and a full range of aerodynamic, air management and transmission automation control products in North America.
“The acquisition of the remaining stake in Meritor Wabco furthers our commitment to expand our presence in North America,” said Jacques Esculier, Wabco chairman and CEO.
Meritor intends to use the proceeds from the transaction toward its M2019 strategic priorities, which include paying down debt, funding strategic investments and repurchasing additional shares.
“The decision to sell our interest in the JV enables us to focus on strategic priorities that involve growing our on- and off-highway, specialty, components and aftermarket businesses, among other things,” said Jay Craig, Meritor CEO and president.
Wabco says this consolidation of its business organization and broader access to market in North America will strengthen its relationships with commercial vehicle manufacturers and fleets through more simplified and direct channels.
Wabco will take over the former joint venture’s application engineering and supply chain operations, …Read the rest of this story
