Cummins Inc. and Meritor Inc. entered into a definitive agreement under which Cummins will acquire Meritor, a global provider of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets, for approximately $3.7 billion. Troy, Mich.-based Meritor has more than 9,600 employees. The transaction, which is expected to close by the end of the 2022, will position Cummins as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications.
“The addition of Meritor’s complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero carbon solutions for commercial and industrial applications,” said Tom Linebarger, Cummins’ chairman and CEO. “This acquisition adds products to our components business that are independent of powertrain technology, and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses.”
Columbus, Ind.-based Cummins supplies diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, after-treatment, turbochargers, fuel systems, controls systems, air-handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation and fuel cell products.