WABCO Completes Buyout of Meritor WABCO Joint Venture
October 03 2017 - 6:30AM
WABCO Holdings Inc. (NYSE:WBC) (www.wabco-auto.com), a leading
global supplier of technologies and services that improve the
safety, efficiency and connectivity of commercial vehicles, today
announced that it has completed the transaction to purchase
Meritor, Inc.’s (NYSE:MTOR) stake in the Meritor WABCO joint
venture and, thereby, take full ownership of the enterprise.
The acquisition demonstrates WABCO’s commitment to consolidate
its operations in North America and unify its businesses under one
team and brand, unlocking further value for customers and offering
seamless access to the full spectrum of WABCO’s industry-leading
safety and efficiency technologies. With the completion of the
transaction, WABCO will now fully integrate the former Meritor
WABCO operations into its WABCO North America Business Unit.
“Taking full control of the Meritor WABCO joint venture business
is a major milestone in expanding our operations in North America,”
said Jon Morrison, WABCO President, Americas. ”We are very much
looking forward to welcoming team members from the joint venture
into the global and dynamic WABCO family.”
Added Morrison, “With this consolidation of its business
organization and broader access to market in North America, WABCO
will further strengthen its connectivity to commercial vehicle
manufacturers and fleet operators through more simplified and
direct channels. Operating fully under the WABCO brand, the local
business will become even more agile, efficient and
customer-focused.”
The former joint venture employs approximately 200 persons and
had sales of $300 million in fiscal year 2016. It currently sells
and distributes a range of WABCO’s leading safety and efficiency
technologies for commercial vehicles in North America.
As previously announced, WABCO has acquired Meritor’s stake
in the joint venture business for a purchase price of $250 million.
Meritor will to continue to be WABCO’s exclusive distributor for a
certain range of WABCO’s Aftermarket products in the U.S. and
Canada, and its non-exclusive distributor in Mexico. In connection
with the purchase transaction, both parties have options to
terminate the distribution arrangements at certain points during
the first three and half years, for an exercise price between $225
million and $265 million based on the earnings of the business.
The agreement to take full control of the joint-venture business
will enable WABCO to offer its consolidated portfolio of products
and systems, including its industry-leading wheel-end
solutions, air disc brakes, autonomous braking, electronic
stability and active steering control systems,
alongside advanced driver assistance systems (ADAS) and a
full range of aerodynamic, air management and transmission
automation control products in North America.
About WABCOWABCO (NYSE:WBC) is a leading global
supplier of technologies and services that improve the safety,
efficiency and connectivity of commercial vehicles. Founded nearly
150 years ago, WABCO continues to pioneer breakthrough innovations
for advanced driver assistance, braking, stability control,
suspension, transmission automation and aerodynamics. Partnering
with the transportation industry as it maps a route toward
autonomous driving, WABCO also uniquely connects trucks, trailers,
cargo, drivers, business partners and fleet operators through
advanced fleet management systems and mobile solutions. WABCO
reported sales of $2.8 billion in 2016. Headquartered in Brussels,
Belgium, WABCO has 13,000 employees in 40 countries. WABCO’s 2016
Annual Report is available at www.ar.wabco-auto.com. For more
information, visit www.wabco-auto.com.
WABCO Media Contacts
WABCO AmericasStephan Koller, +1 248 270 9281,
stephan.koller@wabco-auto.com
WABCO EuropeNina Friedmann, +49 69 719 168
171, wabco@klenkhoursch.de
WABCO Investors and Analysts ContactSean
Deason, +1 248 270 9287, investorrelations@wabco-auto.com
WABCO Forward-Looking StatementsThis document
contains certain “forward-looking statements” as defined by the
Private Securities Litigation Reform Act of 1995 that are based on
management's good faith expectations and beliefs concerning future
developments. Statements preceded by, followed by or that otherwise
include the words “believes,” “expects,” “anticipates,”
“strategies,” “prospects,” “intends,” “projects,” “estimates,”
“plans,” “may increase,” “may fluctuate,” and similar expressions
or future or conditional verbs such as “will,” “should,” “would,”
“may” and “could” are generally forward looking in nature and not
historical facts. Actual results may differ materially from these
expectations as a result of many factors. These factors include,
but are not limited to, the actual level of commercial vehicle
production in our end markets, adverse developments in the business
of our key customers, pricing changes to our supplies or products,
our ability to successfully integrate any acquired businesses or
our acquired businesses not performing as planned, our ability to
mitigate any tax risks, including, but not limited to those risks
associated with changes in legislation, tax audits and the loss of
the benefits associated with our tax rulings and incentives in
certain jurisdictions, and the other risks and uncertainties
described in the “Risk Factors” section and the “Information
Concerning Forward Looking Statements” section of WABCO’s Form
10-K, as well as in the “Management's Discussion and Analysis of
Financial Condition and Results of Operations - Information
Concerning Forward Looking Statements” section of WABCO’s Form 10-Q
Quarterly Reports. WABCO does not undertake any obligation to
update such forward-looking statements. All market and industry
data are based on company estimates.
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