Cummins Inc has announced the completion of its acquisition of Meritor Inc, a leading global supplier of drivetrain, mobility, braking, aftermarket and electric powertrain solutions for commercial vehicle and industrial markets. The deal was worth about $3.7 billion.
The addition of Meritor strengthens Cummins’ range of powertrain components and will enable accelerated development of electrified power solutions. As demand for decarbonised solutions accelerates, ePowertrains will be a critical integration point within hybrid and electric drivetrains creating packaging and performance differentiation and the opportunity to provide advanced clean mobility products for customers.
Cummins intends to deliver market-leading decarbonised solutions to its global customers by accelerating Meritor’s investment in electrification and integrating development within its New Power business.
The acquisition of Meritor also adds products to Cummins’ components business that present attractive growth opportunities across the Company’s range of power solutions and applications. Cummins expects to utilise its global footprint to accelerate the growth of these core axle and brake businesses by serving commercial truck, trailer, off-highway, defense, specialty and aftermarket customers around the world.
Cummins’ president and CEO, Jennifer Rumsey, said she was excited to welcome Meritor’s employees into the business.
“Together, Cummins and Meritor will move further and faster in developing economically viable decarbonised powertrain solutions that are better for people and our planet,” she added.
