Meritor said it had agreed a deal with Siemens to acquire its commercial vehicles business for approximately EUR190 million in cash, adjusted for changes in working capital at closing. The transaction was expected to close by calendar year-end, subject to regulatory approvals and customary closing conditions.
“The Siemens CV business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market,” said Chris Villavarayan, Meritor CEO and president. “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.”
“Commercial Vehicles is another success story for value creation through our portfolio companies concept. We have turned it into a profitable business and now found the ideal new strategic owner,” said Ralf Thomas, CFO of Siemens.
With approximately 200 employees across Germany, China and the United States, the Siemens CV business develops, designs and produces high performance electric drive systems. Product offerings 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 the new owner to offer global customers a wider array of electrified products across the CV, transit, off highway and specialty markets.
Under 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 business.