Meritor to acquire Siemens Commercial Vehicles business
By Chad Elmore24 May 2022
Complementary electric propulsion product portfolio expected to expand capabilities, offerings
Troy, Mich.-based Meritor Inc. has entered into an agreement with Siemens to acquire its Commercial Vehicles business for approximately $204 million (€190 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,” said Chris Villavarayan, CEO and president, Meritor. “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.”
With approximately 200 employees across Germany, China and the United States, the Siemens Commercial Vehicles business develops and produces electric drive systems. Products 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 acquisition of Commercial Vehicles enhances our Blue Horizon brand by expanding our electric vehicle product capability and strengthening the Meritor team with important technical capabilities,” said Chris Villavarayan, CEO and president, Meritor. “We are impressed with the accomplishments of Commercial Vehicles’ leadership and employees and look forward to them becoming an important part of our team.”
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.
For Siemens, the move was considered another step in its implementation of a previously announced plan to sharpen its portfolio as a technology company. Commercial Vehicles is part of the firm’s Portfolio Companies.
“Commercial Vehicles is another success story for our Portfolio Companies’ concept,” said Ralf P. Thomas, CFO of Siemens AG, Munich, Germany. “We have turned Commercial Vehicles into a profitable business and now found the ideal new owner that is a great strategic fit. It is a win-win for both Siemens and Commercial Vehicles. Our value creation through the portfolio companies continues in full swing and today is another milestone to optimize our portfolio.”