TROY, MI – WABCO Holdings is upping the ante in its North American ownership, announcing this morning that it is taking full control of the he Meritor WABCO joint venture.
In a press release, WABCO Holdings said it was purchasing Meritor’s stake in the joint venture business, with a transaction that is expected to close Oct. 1.
Meritor WABCO, a distributer of WABCO products for commercial vehicles in North America, employs about 200 people and had sales of $300 million in fiscal year 2016.
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.
The deal will also ensure 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.
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 United States and Canada, and its non-exclusive distributor in Mexico.
Jacques Esculier, WABCO chairman and CEO, said acquiring the partnership will unify and strengthen the group’s North American presence.
The company also says the consolidation of its business will allow them to further strengthen relationships with commercial vehicle manufacturers and fleets through more simplified and direct channels.
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