Meritor Inc. has cut a deal to acquire the commercial vehicles business of Siemens.
The transaction is expected to close by the end of the year. The acquisition is valued at 190 million euros in cash (about $202 million in U.S. dollars), according to a news release.
Siemens is based in Munich. Siemens USA is headquartered in Washington, D.C.
Siemens Commercial Vehicles business develops, designs and produces high-performance electric drive systems. The division has about 200 employees across Germany, China and the United States.
Its product offerings include direct drive and transmission-based remote mount electric motors, inverters, software and related services, which Meritor expects to be critical elements in the next generation of electric powertrains, according to a news release.
Troy, Mich.-based Meritor makes and develops of drivetrains, brakes, axles and electric powertrains for commercial vehicle and industrial markets. An agreement for Cummins Inc. to acquire Meritor was announced in February and is expected to close by year end.
Cummins has consented to and supports the acquisition of Siemens Commercial Vehicles business, according to the news release.
“The Siemens Commercial Vehicles business offers capabilities and technology that will enhance our ability to offer superior electric solutions to the global commercial vehicle market,” Chris Villavarayan, Meritor’s CEO and president, said in a news release. “As the urgency grows for zero-carbon solutions, this highly talented and skilled team, and leading electric product portfolio, strengthens Meritor’s business as we move toward the anticipated acquisition by Cummins.”
In addition, 350,000 miles have been logged on commercial vehicles equipped with the company’s 14Xe single or tandem electric powertrain. The powertrains are described as more efficient, lighter and smaller than other systems. It is designed to interchange with its 14X axle housing and can be adapted to various original equipment manufacturer specifications, according to a news release.