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Cummins to buy Meritor for $3.7 billion

22 February 2022

Cummins Inc. and Meritor, Inc. announced a definitive agreement under which Cummins will acquire Meritor, a global supplier of axle and brake technology. Cummins will pay $36.50 in cash for each Meritor share—representing a 48% premium over the last closing price—for a total transaction value of $3.7 billion, including assumed debt and acquired cash.

The integration of Meritor will position Cummins to provide integrated powertrain solutions across combustion and electric power applications. Cummins believes eAxles will be a critical integration point within hybrid and electric drivetrains. Cummins intends to accelerate Meritor’s investment in electrification and integrating development within its New Power business.

Meritor has a legacy dating back more than 110 years. The company, headquartered in Troy, MI, has 9,600 employees serving commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world.

The deal is expected to close by the end of the calendar year.

Source: Cummins