- 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
"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. 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 Daylight Time. Dial-in details will be provided ahead of the call on the Investor Relations page of the company's website at www.wabco-auto.com. 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.