Meritor Inc. announced it entered into an agreement to acquire AxleTech from an affiliate of The Carlyle Group for $175 million to accelerate global sales and growth.
AxleTech’s products include independent suspensions, axles, brake products and electric drivetrain components marketed to the off-highway, defense, specialty and aftermarket segments.
Both companies are based in Troy, Mich. The transaction is expected to close in Meritor’s fiscal fourth quarter.
The company expects to realize more than $15 million in annual cost synergies by fiscal 2022 through operating, productivity and manufacturing efficiencies. Meritor had revenue of $4.2 billion and AxleTech $248 million in 2018.
AxleTech began as the North American off-highway and European specialty division of Rockwell International. Rockwell spun off its automotive business — including in the deal what would become AxleTech — in 1997, and Meritor Automotive was born. Meritor subsequently spun off AxleTech in 2002. — Transport Topics