Wabco Holdings Inc. has completed the purchase of Meritor, Inc.’s stake in the Meritor Wabco joint venture, a move intended to strengthen Wabco’s contact with commercial vehicle manufacturers and fleet operators through more simplified and direct channels.
“Taking full control of the Meritor Wabco joint venture business is a major milestone in expanding our operations in North America,” Jon Morrison, Wabco president of the Americas, said in a statement. “We are very much looking forward to welcoming team members from the joint venture into the global and dynamic Wabco family.”
WABCO completes buyout of the Meritor WABCO Joint Venture in North America https://t.co/f0J2lmnLaS— WABCO (@WABCO) October 3, 2017
The completed transaction ends the 27-year arrangement between the companies. The deal was announced in mid-September.
Wabco acquired Meritor’s stake in the joint venture business for $250 million. Meritor will to continue to be Wabco’s exclusive distributor for a certain range of Wabco’s aftermarket products in the United States and Canada, and its nonexclusive distributor in Mexico. In connection with the purchase transaction, both parties have options to terminate the distribution arrangements at certain points during the first 3½ years, for an exercise price between $225 million and $265 million based on the earnings of the business, according to Brussels-based Wabco.