Light- and heavy-vehicle technologies come together
Meritor Automotive and Arvin Industries announced a definitive merger agreement, which will combine their businesses to create a premier global supplier of a broad range of integrated systems, modules, and components for light vehicle, commercial truck, trailer, and specialty OEMs and related aftermarkets.
Arvin Industries is a leading worldwide manufacturer of automotive components, while Meritor consists of two businesses: heavy- and light-vehicle systems.
ArvinMeritor - the new company's name -will have its headquarters in Troy, Mich. All operating units of Arvin and Meritor will remain at their current locations. Larry Yost, chairman and CEO of Meritor, will head up the new company as chairman and CEO, with Bill Hunt, chairman and CEO of Arvin, to serve as vice chairman and president. It was agreed that upon Yost's retirement, Hunt will succeed him as chairman and CEO.
Yost and Hunt will oversee operations of the company's six business groups, which include heavy-vehicle systems, light-vehicle systems, exhaust systems, light-vehicle aftermarket, heavy-vehicle aftermarket, and coil coating.
The merger, according to the two executives, brings together two strong companies, which by combining financial and strategic strengths, complementary products and businesses, and brand leadership will strengthen their ability to better serve customers and take advantage of global market opportunities.
Yost says both companies have proven track records of successfully integrating acquisitions. "We've established a joint team to plan and execute the post-closing integration of our two companies ... which we expect to be complete within a year after closing," Yost comments. "The team will focus on adopting best practices from each company, such as the Arvin Total Quality Production System and Meritor's strategic envisioning process and lean manufacturing initiatives."
On completion of the merger, which is subject to shareholder and regulatory approvals, ArvinMeritor's combined annual revenues are estimated to be $7.5 billion. Meritor shareholders will own almost two-thirds of the new company's stock.