US company, Meritor, has entered an agreement with an affiliate of investment firm, The Carlyle Group, to acquire AxleTech for approximately $175 million USD (€156.2 million) in cash.
The transaction advances Meritor’s M2022 objectives to accelerate global sales and growth by leveraging the company’s core competencies to grow strategically in adjacent markets. The addition of AxleTech enhances Meritor’s growth platform, bringing a highly complementary global product portfolio across the off-highway, defence, specialty and aftermarket segments.
AxleTech’s offerings include a full product line of independent suspensions, axles, braking solutions and drivetrain components. These capabilities will reportedly enable Meritor to offer global customers a wider array of differentiated products and solutions while further diversifying the company’s portfolio.
Headquartered in Troy, Michigan, AxleTech is a privately-held leading technology company that designs, engineers, manufactures, sells and services drivetrain systems and components, with a focus on off-highway applications. AxleTech generated $248 million USD (€221.5 million) in revenue in 2018.
“We are delighted to welcome AxleTech back to the Meritor family,” said Meritor CEO and President, Jay Craig.
“The addition of AxleTech is a compelling value-creating opportunity to broaden our position in attractive, adjacent markets and advances our M2022 strategy.
“Meritor’s technical expertise, operational excellence and proven track record will be a powerful platform to accelerate growth.
“Our product portfolios are highly complementary and we share a commitment to our people and customers.
We look forward to realising the full benefits of the transaction by serving as a premier supplier to our global customers and enhancing shareholder value,” he said.
AxleTech CEO, Bill Gryzenia said the company has positioned itself as a strong, advanced drivetrain solutions manufacturer in the off-highway and defence market segments.
“These solutions range from heavy-duty axles to new remanufacturing capabilities and electric powertrain systems for our global customer base,” he said. “Today marks an exciting chapter for AxleTech and reflects the collective efforts of our entire team. We believe that Meritor’s deep understanding of the business and best-in-class capabilities are a natural fit to support AxleTech’s next growth phase.”
Earlier this month, Meritor reported sales of $1.156 million USD (approx. €1.396 million), following the release of its Q2 2019 financial results.