Meritor To Fortify Product Range With AxleTech Acquisition
Zacks Investment Research | May 12, 2019 09:05PM ET
Meritor, Inc. (NYSE:MTOR) is set to acquire AxleTech, a Troy, MI-based company that engages in designing, manufacturing, and selling of drivetrain systems and components for a cash payment of roughly $175 million. Furthermore, Meritor signed the acquisition agreement with an affiliate of The Carlyle Group (NASDAQ:CG), a global investment company.
The deal is in sync with Meritor’s M2022 objective, which aims to improve worldwide sales by expanding core competencies along with an increasing tactical presence in adjacent markets. AxleTech’s product lineup will aid Meritor to widen its offering across off-highway, defense, specialty and aftermarket segments. AxleTech’s range of suspensions, axles and drivetrain components will allow Meritor to cater to customers.
The acquisition will diversify Meritor’s exposure in adjacent end-markets while driving growth, which will support its target of realizing more than $15 million in annual cost synergies by fiscal 2020. The combination of Meritor’s leading position in the on-highway market and AxleTech’s product portfolio will aid Meritor to access new as well as existing customers.
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