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WABCO Consolidates Operations in North American Commercial Vehicle Market through Agreement to Buyout of Meritor WABCO Joint Venture

  • Acquisition strengthens WABCO’s connections to commercial vehicle makers and fleet operators in the region
  • Agreement signed to purchase Meritor Inc.’s stake in Meritor WABCO joint venture

BRUSSELS, Belgium, September 18, 2017 – WABCO Holdings Inc. (NYSE:WBC), a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, today announced that it will further expand its commitment and operations in the commercial vehicle market in North America by taking full ownership of the Meritor WABCO joint venture.

WABCO has signed an agreement to purchase Meritor, Inc.’s (NYSE:MTOR) stake in the joint venture business. WABCO’s purchase price is $250 million. The transaction is expected to close on October 1, 2017 and immediately prior to closing, Meritor will receive a final closing partnership distribution. 

Meritor WABCO, employing approximately 200 persons, is headquartered in Troy, Michigan, U.S.A. and had sales of $300 million in fiscal year 2016. It currently sells and distributes a range of WABCO’s leading safety and efficiency technologies for commercial vehicles in North America.

“The acquisition of the remaining stake in Meritor WABCO furthers our commitment to expand our presence in North America,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer. “By unifying our North America team, WABCO can unlock further value for our customers, including offering them seamless access to WABCO’s powerful technology and services portfolio, backed by the flexibility and efficiency of an integrated global supply chain.”  

As the commercial vehicle industry advances toward a vision for fully-autonomous vehicles, WABCO is increasingly mobilizing levels of vehicle intelligence and connectivity to help enable safer and more productive trucks, buses and trailers. With this consolidation of its business organization and broader access to market in North America, WABCO will further strengthen its relationships with commercial vehicle manufacturers and fleets through more simplified and direct channels. Operating fully under the WABCO brand, the local business will become even more agile, efficient and customer-focused.

“We strive to continually improve WABCO’s capability to serve commercial vehicle makers and fleets in North America, enabling delivery of goods and transportation of people as safely and efficiently as ever,” said Jon Morrison, WABCO President, Americas. “By combining our organization under one brand and leadership structure, we can leverage and deploy, here in North America, the full breadth of WABCO’s leading technology portfolio to serve customers directly - as we do in the rest of the world.”

With this agreement, WABCO will take over the former joint venture’s application engineering and supply chain operations, including the distribution center and customer service hub in Hebron, Kentucky. In addition, WABCO will continue to have exclusive access to a winter test track in Sault St. Marie, Michigan, and joint access to a year-round test track in East Liberty, Ohio to support local customers.

The agreement to take full control of the joint-venture business will enable WABCO to offer its consolidated portfolio of products and systems including its industry-leading wheel-end solutions, air disc brakes, autonomous braking, electronic stability and active steering control systems, alongside advanced driver assistance systems (ADAS) and a full range of aerodynamic, air management and transmission automation control products in North America.

Following closure of the buyout, WABCO has agreed for Meritor to continue to be its exclusive distributor for a certain range of WABCO’s Aftermarket products in the U.S. and Canada, and its non-exclusive distributor in Mexico. In connection with the purchase transaction, both parties have the option to terminate the distribution arrangements at certain points during the first three and half years, for an exercise price between $225 million and $265 million based on the earnings of the business.

hariy woman Investor Call

WABCO will host a call for investors and analysts on Friday, September 22, 2017 from 9:00 A.M. to 10:00 A.M. Eastern Standard Time. Dial-in details will be provided ahead of the call on the Investor Relations page of the company’s website at

hentai camera About WABCO North America

  • Headquartered in Rochester Hills, Michigan, including a center for research, engineering and product development
  • WABCO has a newly opened manufacturing facility in North Charleston, South Carolina
  • WABCO Reman Solutions is based in Rochester Hills, Michigan, also with operations in San Luis Potosi, Mexico
  • MICO, a WABCO Company, has its headquarters and manufacturing base in North Mankato, Minnesota, and manufacturing in Empalme, Sonora, Mexico
  • Laydon Composites, a WABCO Company, has headquarters and manufacturing in Oakville, Ontario, Canada
  • R.H. Sheppard, with headquarters in Hanover, Pennsylvania, and manufacturing in Wytheville, Virginia. WABCO recently signed an agreement to acquire Sheppard.
  • Following conclusion of the agreements to acquire R.H Sheppard and Meritor WABCO, WABCO will employ approximately 1,500 persons in North America. The transactions are expected to conclude by the end of September 2017 and by October 1, 2017 respectively. About WABCO

WABCO (NYSE:WBC) is a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles. Founded nearly 150 years ago, WABCO continues to pioneer breakthrough innovations for advanced driver assistance, braking, stability control, suspension, transmission automation and aerodynamics. Partnering with the transportation industry as it maps a route toward autonomous driving, WABCO also uniquely connects trucks, trailers, cargo, drivers, business partners and fleet operators through advanced fleet management systems and mobile solutions. WABCO reported sales of $2.8 billion in 2016. Headquartered in Brussels, Belgium, WABCO has 13,000 employees in 40 countries. WABCO’s 2016 Annual Report is available at For more information, visit

follow WABCO Media Contacts WABCO Americas

Stephan Koller, +1 248 270 9281,

source link WABCO Europe

Nina Friedmann, +49 69 719 168 171,

go to site WABCO Investors and Analysts Contact

Sean Deason, +1 248 270 9287,

WABCO Forward-Looking Statements

This document contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that are based on management's good faith expectations and beliefs concerning future developments. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “strategies,” “prospects,” “intends,” “projects,” “estimates,” “plans,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward looking in nature and not historical facts. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the actual level of commercial vehicle production in our end markets, adverse developments in the business of our key customers, pricing changes to our supplies or products, our ability to successfully integrate any acquired businesses or our acquired businesses not performing as planned, our ability to mitigate any tax risks, including, but not limited to those risks associated with changes in legislation, tax audits and the loss of the benefits associated with our tax rulings and incentives in certain jurisdictions, and the other risks and uncertainties described in the “Risk Factors” section and the “Information Concerning Forward Looking Statements” section of WABCO’s Form 10-K, as well as in the “Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements” section of WABCO’s Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on company estimates.


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