BRUSSELS, Belgium — Wabco has finalized the deal to purchase the Meritor Wabco joint venture that introduced its products to North America — although Meritor will continue to distribute Wabco aftermarket offerings.
The joint venture, which employs about 200 people and recorded sales of US $300 million in 2016, is now being integrated into Wabco’s North America Business Unit. Wabco purchased Meritor’s stake for US $250 million.
“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.
“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,” he said.
Meritor will continue to be Wabco’s exclusive distributor for a range of aftermarket products in the U.S. and Canada, while a non-exclusive arrangement will cover Mexico. The distribution agreement is secured for 3-1/2 years, although either party has the option to terminate that deal for between US $225-265 million, depending on business earnings.
The new business structure gives Wabco the chance to offer a consolidated portfolio of products including wheel end solutions, air disc brakes, autonomous braking, electronic stability, active steering control systems, and Advanced Driver Assistance Systems, as well as aerodynamic, air management, and transmission automation control products.