Meritor to Acquire Brake Business

TROY, Mich. — Meritor Automotive will acquire Lucas-Varity Heavy Vehicle Braking Systems for $390 million in cash.

The move expands Meritor’s presence in Europe and enhances the company’s position as a broad-based supplier of drivetrain systems and components.

Meritor Chairman Larry Yost said the HVBS acquisition will add approximately $400 million to Meritor’s sales in 1999.

Based in Dayton, Ohio, LucasVarity HVBS makes air disc brakes, hubs, drums and hydraulic brakes to match Meritor’s offering of foundation brakes, automatic slack adjusters, wedge brakes, air disc brakes, antilock braking systems, air dryers and valves.

LucasVarity HVBS generated sales of $290 million in fiscal year 1997, evenly divided between North America and Europe.