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May 10, 2019 1:45 PM, EDT

Meritor in Agreement to Acquire AxleTech

Meritor A Meritor booth at an industry show. (John Sommers II for Transport Topics)

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.

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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