WABCO Completes Buyout Of Meritor WABCO JV

By David Lubach03 October 2017

WABCO Holdings Inc., a global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, announced that it has completed the transaction to purchase Meritor Inc.’s stake in the Meritor WABCO joint venture, taking full ownership of the enterprise, the companies announced.

The acquisition consolidates WABCO’s operations in North America under one team and brand, the company said.

The former joint venture employs approximately 200 persons 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.

WABCO said the purchase price for its stake in the joint venture is $250 million. Meritor will continue to be WABCO’s exclusive distributor for a certain range of WABCO’s aftermarket products in the U.S. and Canada, and its non-exclusive distributor in Mexico.

In connection with the purchase transaction, both parties have options to terminate the distribution arrangements at certain points during the first three and half years, for an exercise price between $225 million and $265 million based on the earnings of the business.

The agreement to take full control of the joint-venture business will enable WABCO to offer its consolidated portfolio of products and systems, including its industry-leading wheel-end solutions, air disc brakes, autonomous braking, electronic stability and active steering control systems, alongside advanced driver assistance systems and a full range of aerodynamic, air management and transmission automation control products in North America.

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