Meritor, Inc. has entered into an agreement with an affiliate of The Carlyle Group, a global investment firm, under which Meritor will acquire AxleTech for approximately US$175 million.

Headquartered in Troy, Michigan, AxleTech is a privately held leading technology company that designs, engineers, manufactures, sells and services drivetrain systems and components, with a focus on off-highway applications. AxleTech generated US$248 million in revenue in calendar year 2018.

The addition of AxleTech enhances Meritor‘s growth platform, bringing a highly complementary global product portfolio across the off-highway, defence, specialty and aftermarket segments. AxleTech‘s offerings include a full product line of independent suspensions, axles, braking solutions and drivetrain components. These capabilities will enable Meritor to offer global customers a wider array of differentiated products and solutions while further diversifying the company‘s portfolio.

“The addition of AxleTech is a compelling value-creating opportunity to broaden our position in attractive, adjacent markets and advances our M2022 strategy,” said Jay Craig, Meritor‘s CEO and president. “Meritor‘s technical expertise, operational excellence and proven track record will be a powerful platform to accelerate growth. Our product portfolios are highly complementary and we share a commitment to our people and customers.”

AxleTech CEO Bill Gryzenia said AxleTech had positioned itself as a strong, advanced drivetrain solutions manufacturer in the off-highway and defence market segments.

“These solutions range from heavy-duty axles to new remanufacturing capabilities and electric powertrain systems for our global customer base. We believe that Meritor‘s deep understanding of the business and best-in-class capabilities are a natural fit to support AxleTech‘s next growth phase.”