BARTHOLOMEW CO. – Cummins Inc.’s plans to acquire Meritor Inc. are reviving the history of a company that was once a household name in Bartholomew County – Arvin Industries in a deal worth about $3.7 billion dollars. Cummins will pay $36.50 for every Meritor share.
The Columbus-based engine manufacturer said that Meritor is a global leader of drivetrain, mobility, braking, aftermarket, and electric powertrain solutions for commercial vehicle and industrial markets.
Cummins Chairman and CEO Tom Linebarger said the Meritor strengths will help Cummins develop economically viable zero-carbon solutions.
“The acquisition of Meritor is an important milestone for Cummins. Meritor is an industry leader, and the addition of their complementary strengths will help us address one of the most critical technology challenges of our age: developing economically viable zero-carbon solutions for commercial and industrial applications,” said Tom Linebarger, Chairman, and CEO, Cummins. “Climate change is the existential crisis of our time and this acquisition accelerates our ability to address it. Our customers need economically viable decarbonized solutions.
“In addition, our communities and our planet depend on companies like Cummins to invest in and develop these solutions,” Linebarger added. This acquisition adds products to our components business that are independent of powertrain technology, and by leveraging our global footprint we expect to accelerate the growth in Meritor’s core axle and brake businesses. There is also a compelling financial case for this acquisition, with significant synergies expected in SG&A, supply chain operations, and facilities optimization.”
Meritor’s history goes back more than 110 years and the company is based in Troy, Michigan. The company has more than 9,600 employees.
“This agreement with Cummins builds on Meritor’s track record of outstanding performance and service to our customers. Our offerings will continue to play an important, strategic role as commercial vehicles transform to become electric and autonomous,” said Chris Villavarayan, CEO and President of Meritor. “At closing, Meritor shareholders will receive immediate value at a compelling 48% premium to the Meritor trading price as of Feb. 18, 2022, and customers will benefit from enhanced capabilities in technology and the ability to accelerate investment in the axle and brake development and EV adoption. Our global team members and their commitment to excellence helped make this transaction possible and will fuel our innovations as we embark on this next chapter in our longstanding legacy.”
In 2000, Meritor merged with Columbus-based Arvin Industries to form ArvinMeritor. Although billed as a merger of equals, the company began folding its Columbus operations, closing plants and facilities. 11 years later, the company dropped Arvin from the company name. Former Arvin facilities include the current Bartholomew Consolidated School Board headquarters building on Central Avenue, the Doug Otto United Way Center on 13th Street, factory space on 17th Street, as well as the plant on Gladstone operated by Faurecia.
You can read more about the Cummins/Meritor news here.
You can read more about the history of Arvin Industries here.
