Meritor Automotive to buy LucasVarity’s heavy vehicle brake business
TROY, Mich. — Meritor Automotive says it has an agreement to buy the heavy-vehicle braking systems (HVBS) business of Britain-based LucasVarity plc for $390 million US in cash.
Meritor chairman and CEO Larry Yost said the deal will help his company complete more effectively in Europe and enhance its drivetrain and brake products line, especially regarding disc brake technology.
LucasVarity HVBS components include air disc brakes, hubs, drums, and hydraulic brakes. Based in Dayton, Ohio, the division employs 1800 people and reported sales of approximately $290 million US for fiscal year 1997, divided evenly between North America and Europe.
Yost expects the HVBS acquisition to add approximately $400 million to Meritor’s sales in 1999. Meritor recorded 1998 sales of more than $3.8 billion.
LucasVarity announced its intention to sell it HVBS business in August. The transaction, expected to close in January, is subject to customary regulatory approvals.
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