The acquisition of Meritor, Tenneco will have a major impact on Metro Detroit

“We see a synergistic effect of SG & A across the two businesses, which makes them smaller than the current two businesses, but it’s too early to decide which one to combine,” Davis said. “We haven’t fully embarked on that job yet.”

Meritor refused to allow executives to interview.

“While this deal offers most employees an enhanced opportunity, Cummins expects some synergies and will work with relevant employees and stakeholders when the time comes. We communicate this openly and transparently, “said Chris Villabarayan, CEO of Meritor. Klein’s..

“We haven’t discussed or made a decision about Troy headquarters,” Meritor said in a document filed with the Securities and Exchange Commission after the announcement on Tuesday. The acquisition “does not affect the majority of employees”, but has “some overlapping features and positions”.

Davis said it has not yet been decided what will happen to Meritor executives.

The supplier’s roots date back more than a century, but the automotive headquarters was founded in Troy in 1975. The company became Meritor in 1997 when Rockwell International spun off its automotive business.

In 2000, it became Arvin Meritor after the merger with Arvin Industries, but returned to Meritor Monica after selling its light vehicle business in 2011.

Supplier Inconvenient The COVID-19 pandemic also had a financial blow, but due to the Great Recession. The company also appears to be recovering from recent fluctuations in truck production, with adjusted profits of $ 113 million and sales of $ 948 million in the first quarter of fiscal 2022, both the previous year. It increased by 11%.

Meritor strain After the acquisition was announced, the market closed on Thursday, raising 45% to $ 35.72.

Steven Wybo, Birmingham-based Senior Restructuring and Management Consultant at Riveron, said: “If you put together a good company, 1 plus 1 becomes 3.”

Cummins, the product of multiple M & As and investment transactions, has an expanding footprint throughout North America. Davis said he recognizes the benefits of having the potential to establish Cummins’ electricity business base in Metro Detroit.

“I’m very open to considering Troy because of the huge amount of vehicle innovation that’s happening there and the talent available,” she said.

https://ift.tt/B6AYU2I The acquisition of Meritor, Tenneco will have a major impact on Metro Detroit

The post The acquisition of Meritor, Tenneco will have a major impact on Metro Detroit appeared first on Autobala.

Auto Updates