Meritor Inc. has agreed to acquire the commercial vehicle business of Siemens for around $200 million as Cummins Inc. moves forward on its takeover of the Troy-based parts supplier.
Meritor’s acquisition, announced Friday and expected to close by the end of the year, further bolsters its electric power portfolio that Cummins will ultimately take on with its $3.7 billion purchase of Meritor.
“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,” Chris Villavarayan, president and CEO of Meritor, said in a news release. “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.”
Siemens’ commercial vehicle unit comes with 200 employees across Germany, China and the U.S. who develop, design and manufacture electric drive systems.
The Cummins takeover of Meritor, announced in February, is expected to also close by the end of the year. Synonymous with heavy-duty diesel, Cummins is making a big push toward electrification and putting Meritor at the center of those plans.
“Commercial Vehicles is another success story for value creation through our portfolio companies concept,” Ralf Thomas, CFO of Siemens AG, said in the release. “We have turned it into a profitable business and now found the ideal new strategic owner.”
Source: https://www.crainsdetroit.com/manufacturing/meritor-acquire-siemens-commercial-vehicle-unit
