Meritor Inc. entered into an agreement with an affiliate of The Carlyle Group, a global investment firm, under which Meritor will acquire AxleTech for approximately $175 million. Troy, Mich.-based AxleTech designs, engineers, manufactures, sells and services drivetrain systems and components, axles and braking solutions. These capabilities will enable Meritor to offer global customers a wider array of differentiated products and solutions while further diversifying its portfolio.

Upon completion of the transaction, AxleTech will operate within Meritor's Aftermarket, Industrial and Trailer segment. The transaction is currently expected to close in the fourth fiscal quarter, subject to regulatory approvals and customary closing conditions.

Meritor, which is also based in Troy, is a global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets.