Meritor to acquire Euclid Industries

TROY, Mich. — Vehicle component-maker Meritor Automotive said it plans to buy Euclid Industries, supplier and manufacturer of aftermarket replacement parts for a wide range of medium- and heavy-duty vehicles, for an undisclosed sum.

It is the second major acquisition by Meritor in less than two weeks. Late last month, the company agreed to buy the Heavy Vehicle Braking Systems (HVBS) business of London-based LucasVarity plc for $390 million.

Headquartered in Cleveland, Ohio, Euclid Industries produces and supplies more than 15,000 aftermarket replacement parts for heavy-duty trucks, trailers, tractors, school buses, and specialty vehicles. Its customers include more than 600 independent heavy-duty truck parts distributors in approximately 2200 locations across the United States and Canada. The company, which is privately held, had sales of $100 million for its fiscal year ended August 31, 1998.

The transaction is expected to close by the end of this month, is subject to regulatory approvals.

The agreement to buy Euclid bolsters Meritor’s aftermarket business and “helps provide further balance against the cyclical impact of our served OEM markets,” said Meritor chairman Larry Yost.

Meritor, with $3.8 billion in sales during its first full year as a publicly held company, has been aggressively trying to strengthen its position in the global automotive original equipment and aftermarket segments, Yost added.

Earlier this year, Meritor acquired Volvo’s heavy-truck axle manufacturing plant in Sweden, becoming the primary supplier of heavy-duty axles for Volvo’s global heavy truck operations.