Meritor, Inc., announced Wednesday that it has entered into an agreement to acquire AxleTech for approximately $175 million in cash.
Headquartered in Troy, Mich., AxleTech is a privately-held technology company that designs, engineers, manufactures, sells and services drivetrain systems and components, with a focus on off-highway applications.
“The addition of AxleTech is a compelling value-creating opportunity to broaden our position in attractive, adjacent markets and advances our M2022 strategy,” said Jay Craig, Meritor’s CEO and president. Meritor’s M2022 objective is to accelerate global sales and growth by leveraging the company’s core competencies to grow strategically in adjacent markets.
Craig says the addition of AxleTech enhances Meritor’s growth platform, bringing a highly complementary global product portfolio across the off-highway, defense, specialty and aftermarket segments. AxleTech’s offerings include a full product line of independent suspensions, axles, braking solutions and drivetrain components. These capabilities will enable Meritor to offer global customers a wider array of differentiated products and solutions while further diversifying the company’s portfolio.
“Meritor’s technical expertise, operational excellence and proven track record will be a powerful platform to accelerate growth,” Craig says. “Our product portfolios are highly complementary and we share a commitment to our people and customers. We look forward to realizing the full benefits of the transaction by serving as a premier supplier to our global customers and enhancing shareholder value.”