Meritor said Friday that it has entered into an agreement with Siemens to acquire its commercial vehicles business for approximately $200 million in cash. Cummins, which is set to acquire Meritor later this year, has consented to and is supportive of the deal.
Siemens' commercial vehicles business develops, designs and produces high-performance electric drive systems with product offerings that 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.
Meritor's CEO and president Chris Villavarayan said these capabilities will enable Meritor to offer global customers a wider array of electrified product solutions across the commercial vehicle, transit, off-highway and specialty markets.
"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," he said.
The Siemens deal ultimately will be yet another tool in the box for Cummins, which recently has been on the hunt for acquisitions in the emission-friendly space, having in 2019 closed a deal to acquire fuel cell systems provider Hydrogenics and earlier this year picked up a 50% interest in Momentum Fuel Technologies, a natural gas (CNG) fuel system solution for Class 6-8 vehicles co-owned by Rush Enterprises. Cummins this month also acquired Jacobs Vehicle Systems – the grandfather of the Jake Brake – bringing onboard its engine braking and cylinder deactivation technologies.