COLUMBUS, Ind. – Cummins Inc. and Meritor, Inc. on Tuesday morning announced that they have entered into a definitive agreement under which Cummins will acquire the Troy, Michigan, based company. Meritor is a global leader in drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial vehicle and industrial markets.
Cummins will pay $36.50 in cash per Meritor share, for a total transaction value of approximately $3.7 billion, including assumed debt and net of acquired cash.
“The acquisition is an important milestone for Cummins. The addition of Meritor’s complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero-carbon solutions for commercial and industrial applications,” said Cummins Chairman/CEO Tom Linebarger.
The integration of Meritor’s people, technology, and capabilities should position Cummins as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications.
The former Arvin Industries of Columbus was acquired by Meritor in July 2000 for $670 million.