Meritor Inc. will acquire Siemens' Commercial Vehicles business for about $200 million to further its investment in electric-vehicle (EV) technology. The transaction is expected to close by the end of the calendar year.
"The Siemens Commercial Vehicles business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market,” said Chris Villavarayan, Meritor's CEO and president. “As the urgency grows for zero-carbon solutions, this highly talented and skilled team, and leading electric product portfolio, strengthens Meritor’s business as we move toward the anticipated acquisition by Cummins.”
With about 200 employees across Germany, China, and the U.S., the Siemens Commercial Vehicles business develops, designs, and produces high-performance electric drive systems. Product offerings include direct drive and transmission-based remote mount electric motors, inverters, software and related services, which Meritor expects to be critical elements in the next generation of electric powertrains. These capabilities will enable Meritor to offer global customers a wider array of electrified product solutions across the commercial vehicle, transit, off-highway and specialty markets, according to a Meritor press release.
Cummins Inc., which acquired Meritor in February for $3.7 billion, approved the transaction. Cummins' acquisition of Meritor was in order to accelerate its fleet electrification. Earlier this year, Cummins had also acquired Jacobs Vehicle Systems from Altra Industrial Motion Corp. for $325 million.