Meritor, Inc. - Experts & Thought Leaders

Meritor, Inc. announced it has entered into a collaboration agreement with ConMet in which Meritor will develop purpose-built trailer suspensions and brakes, as well as tire inflation systems to work with ConMet’s PreSet Plus® eHub. Zero-emissions refrigerated trailers This innovative system will enable the production of zero-emissions refrigerated trailers. To deliver this electrified trailer solution, Meritor is redesigning its trailer suspension and drum brake, including a specifically engineered spindle package to be compatible with ConMet’s eHub. The companies will also continue to jointly evaluate the application of industry-leading, complementary advanced technologies that address evolving e-mobility market trends. advanced transportation technology This agreement with ConMet eMobility demonstrates our focus on advanced transportation technology" “This agreement with ConMet eMobility demonstrates our focus on the future of advanced transportation technology and is another example of an eOptimized™ product solution by Meritor that brings tire management and zero-emission solutions to the commercial vehicle industry." "We are pleased to work with an industry leader like ConMet to deliver the next-generation of products to commercial transportation,” said Saad Malik, general manager, Front Drivetrain and Trailer for Meritor. Flexible design “ConMet identified refrigerated trailers as the first application for its electrification solution, utilizing in-wheel motors to enable zero-emission refrigeration. However, ConMet’s eHub system provides design flexibility as a building block for a variety of applications in the commercial vehicle market,” said Marc Trahand, vice president and general manager of ConMet eMobility. “We are proud to partner with Meritor and combine our innovation and industry expertise as we continue our mission of providing zero-emission solutions worldwide.”

Cummins Inc. and Meritor, Inc. announced that they have entered into a definitive agreement under which Cummins will acquire Meritor, a provider of drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial vehicle and industrial markets. Under the terms of the agreement, 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. Most critical technology “The acquisition of Meritor is an important milestone for Cummins. Meritor is an industry leader, and the addition of their 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 Tom Linebarger, Chairman, and CEO, Cummins. “Climate change is the existential crisis of our time and this acquisition accelerates our ability to address it. Our customers need economically viable decarbonized solutions.” There is also a compelling financial case for this acquisition, with significant synergies expected in SG&A" “In addition, our communities and our planet depend on companies like Cummins to invest in and develop these solutions,” Linebarger added. “This acquisition adds products to our components business that are independent of powertrain technology, and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses. There is also a compelling financial case for this acquisition, with significant synergies expected in SG&A, supply chain operations, and facilities optimization.” Transforming commercial vehicles “This agreement with Cummins builds on Meritor’s track-record of outstanding performance and service to our customers. Our offerings will continue to play an important, strategic role as commercial vehicles transform to become electric and autonomous,” said Chris Villavarayan, CEO and President of Meritor. “At closing, Meritor shareholders will receive immediate value at a compelling 48% premium to the Meritor trading price as of Feb. 18, 2022, and customers will benefit from enhanced capabilities in technology and the ability to accelerate investment in axle and brake development and EV adoption. Our global team members and their commitment to excellence helped make this transaction possible and will fuel our innovations as we embark on this next chapter in our longstanding legacy.” Critical integration point Cummins believes eAxles will be a critical integration point within hybrid and electric drivetrains Meritor is a pioneer in axle and brake technology. The integration of Meritor’s people, technology, and capabilities will position Cummins as one of the few companies able to provide integrated powertrain solutions across combustion and electric power applications. This is the right time to pursue this combination as demand for decarbonized solutions accelerates. Cummins believes eAxles will be a critical integration point within hybrid and electric drivetrains. By accelerating Meritor’s investment in electrification and integrating development within its New Power business, Cummins expects to deliver solutions to global customers. Meritor has a legacy dating back more than 110 years. The company, which is headquartered in Troy, MI, has more than 9,600 employees serving commercial truck, trailer, off-highway, defense, specialty, and aftermarket customers around the world. Strong credit ratings The acquisition of Meritor is expected to be immediately accretive to Cummins’ adjusted EPS and is expected to generate annual pre-tax run-rate synergies of approximately $130 million by year three after closing. Cummins intends to finance the transaction using a combination of cash on the company’s balance sheet and debt and remains committed to maintaining its strong credit ratings. The acquisition of Meritor is expected to be immediately accretive to Cummins’ adjusted EPS The Board of Directors of Meritor has unanimously approved the agreement with Cummins and recommends that Meritor shareholders vote in favor of the transaction at the Special Meeting of Shareholders to be called in connection with the transaction. The transaction, which is subject to customary closing conditions and receipt of applicable regulatory approvals and Meritor shareholder approval, is expected to close by the end of the calendar year. Applicable regulatory approvals Cummins will hold a call with analysts and investors at 9:30 AM EST today to discuss the benefits of this transaction. Participating in that call will be Tom Linebarger, Chairman, and CEO of Cummins, and Mark Smith, Cummins’ Chief Financial Officer, and Chris Villavarayan, CEO and President of Meritor. Morgan Stanley & Co. LLC is serving as financial advisor to Cummins and Mayer Brown is serving as legal advisor. J.P. Morgan Securities LLC is serving as financial advisor to Meritor and Wachtell, Lipton, Rosen & Katz is serving as legal advisor.

BAE Systems, a pioneer in electric propulsion, is collaborating with Meritor, Inc., a supplier of electric powertrain technology, to offer technology solutions for heavy-duty platforms in the industrial and defense vehicle markets. The companies will work together to offer efficient, cost-effective, and fully-integrated electric vehicle solutions. As part of this collaboration, BAE Systems will leverage its expertise in systems integration and power electronics to incorporate its power management system with Meritor’s ePowertrain, for a comprehensive and compact solution. The integrated solution will increase options for multiple applications and conditions in a wide range of industrial markets. Heavy duty markets The technology will harness both companies’ experience and knowledge in electric vehicle propulsion. BAE Systems has more than two decades of expertise in developing and integrating electric propulsion systems, including battery electric and hydrogen fuel cell technology. The technology will harness both companies’ experience and knowledge in electric vehicle propulsion “Combining the work of BAE Systems and Meritor, Inc. will bring together the complimentary capabilities, strengths, and resources of two industry-leading companies,” said Steve Trichka, Vice President and General Manager of Power & Propulsion Solutions at BAE Systems. “Our proven track record in electric drive technology, coupled with Meritor’s experience in ePowertrains, will increase emission-free solutions in heavy-duty markets.” Additional market segments “The collaboration with BAE Systems allows us to further demonstrate the performance of our class-leading ePowertrain in additional market segments,” said Jim Keane, Vice President, Industrial for Meritor. BAE Systems’ Series-EV battery electric and Series-H hydrogen fuel cell products build on 25 years of innovation that power buses around the world. The company has all-electric systems on buses in service throughout North America and Europe, and more than 14,000 propulsion systems in service on transit buses worldwide. Each year those systems contribute to a cleaner world by saving more than 30 million gallons of fuel and eliminating 335,000 tons of carbon dioxide each year across the globe – the equivalent of taking 59,000 cars off the road or planting four million trees. BAE Systems develops and services its electric propulsion technology at its facilities in Endicott, N.Y., and Rochester, U.K.