Check out our 2024 Corporate Sustainability Report!

Cummins Completes Meritor Acquisition

Aug. 5, 2022 - Global power and technology leader, Cummins Inc. has completed its acquisition of Meritor Inc., a leading global supplier of drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial vehicle and industrial markets.

The integration of Meritor’s people, products, and axle and brake technology positions Cummins as a leading provider of integrated powertrain solutions across internal combustion and electric power applications.

As demand for decarbonized solutions accelerates, ePowertrains will be a critical integration point in hybrid and electric drivetrains. They will create packaging and performance differentiation and the opportunity to provide advanced clean mobility products.

Cummins intends to deliver market-leading decarbonized solutions to global customers by accelerating Meritor’s investment in electrification and integrating development within its New Power business.

Acquiring Meritor also expands Cummins’ components business by adding products that present attractive growth opportunities across the Company’s range of power solutions and applications.

Cummins expects to use its global footprint to accelerate the growth of these core axle and brake businesses by serving commercial truck, trailer, off-highway, defense, specialty, and aftermarket customers around the world.

“We are excited to welcome Meritor’s employees into Cummins,” said Jennifer Rumsey, Cummins’ president and chief executive officer. “Together, Cummins and Meritor will move further and faster in developing economically viable decarbonized powertrain solutions that are better for people and our planet.”

Tom Linebarger, Cummins’ executive chairman added, “Cummins can help grow Meritor’s core business given our sales and service network and customer relationships around the world, and this acquisition has clear synergies for both companies that will position us for future investments during our industry’s technology transition. We are relentless in our focus on Destination Zero, our company strategy to achieve net-zero emissions, and will lead in the

transition to decarbonized power. This acquisition is an important step in executing on our strategy.”

As previously announced, the acquisition of Meritor is expected to be immediately accretive to Cummins’ adjusted EPS and generate annual pre-tax run-rate synergies of approximately $130 million by year three after closing, anticipated to be comprised of, among other things, SG&A savings, supply chain operations and facilities optimization.

Cummins financed the acquisition, which had a total transaction value of approximately $3.7 billion, including assumed debt and net of acquired cash, using a combination of cash on the Cummins balance sheet, commercial paper and debt. The company remains committed to maintaining its strong credit ratings.


Crane Hot Line is part of the Catalyst Communications Network publication family.