ArvinMeritor Merger Completed
July 10, 2000
The merger of Arvin Industries and Meritor Automotive has been completed and has resulted in ArvinMeritor, a $7.5 billion global automotive and truck supplier scheduled to begin operations this week.
The merger was announced a few months ago and was officially approved by stockholders late last week. ArvinMeritor stock began trading on the New York Stock Exchange Monday, with Bloomberg news service reporting an 8-percent gain in stock.
The Troy, Mich.-based company expects to see average revenue growth of 10 percent on an annual basis, Chairman and Chief Executive Officer Larry Yost told reporters and financial analysts. "We are committed to deliver annual average top-line growth of 10 percent and earnings per share growth of between 15 and 18 percent to increase shareholder value," he said. The new ArvinMeritor has the scale and scope that forms a strong foundation for additional strategic growth. As a result, we expect to double the size of our new enterprise during the next five years," Yost said.
According to Reuters, Yost acknowledged that in order to meet those goals, a large acquisition was likely, probably filling out the company's auto undercarriage business.
Bill Hunt, ArvinMeritor's vice chairman and president, cited several opportunities that demonstrate immediate customer benefits of the merger. For instance, ArvinMeritor Exhaust Systems sees significant opportunities to provide its proven emissions control and acoustics technologies to heavy truck OEMs looking for effective emissions solutions in both Europe and the Americas. Arvin has been the leading supplier of exhaust systems for passenger cars. In addition, the company expects Meritor's long-standing relationships with heavy truck and trailer OEM dealers and parts distributors to help the new company cross-sell Arvin's well-established exhaust, ride control and filter products. And later this year, ArvinMeritor expects to launch a new online parts catalog and ordering system that will significantly speed service for the company's commercial vehicle aftermarket distributor and OEM customers.
In conjunction with the merger, ArvinMeritor executives announced plans for "Road Tour 2000," a 100-day tour that will allow company leaders to meet with employees, customers and community leaders.
Arvin Industries is a global manufacturer of automotive components with facilities in 22 countries. Meritor consists of two businesses: Heavy Vehicle Systems and Light Vehicle Systems.