Troy-based Meritor Inc., a global supplier of drivetrain, mobility, braking, and aftermarket solutions for commercial vehicle and industrial markets, today announced that it will acquire AxleTech Inc., also of Troy, for approximately $175 million in cash.
The transaction, according to Meritor, advances the company’s M2022 objectives to accelerate global sales and growth by leveraging its core competencies. The addition of AxleTech brings a complementary global product portfolio across the off-highway, defense, specialty, and aftermarket segments.
“The addition of AxleTech is a compelling value-creating opportunity to broaden our position in attractive, adjacent markets, and advances our M2022 strategy,” says Jay Craig, president and CEO of Meritor’s CEO. “Meritor’s technical expertise, operational excellence, and proven track record will be a powerful platform to accelerate growth. Our product portfolios are highly complementary, and we share a commitment to our people and customers.”
AxleTech’s offerings include a full product line of independent suspensions, axles, braking solutions, and drivetrain components. The capabilities will enable Meritor to offer global customers a wider array of differentiated products and solutions while further diversifying the company’s portfolio, the company says.
“AxleTech has positioned itself as a strong, advanced drivetrain solutions manufacturer in the off-highway and defense market segments,” says Bill Gryzenia, CEO of AxleTech. “These solutions range from heavy-duty axles to new remanufacturing capabilities and electric powertrain systems for our global customer base.
“Today marks an exciting chapter for AxleTech and reflects the collective efforts of our entire team. We believe that Meritor’s deep understanding of the business and best-in-class capabilities are a natural fit to support AxleTech’s next growth phase.”