Arvin Industries and Meritor Automotive announced today that they plan to combine their businesses in a "strategic merger of equals."
The new company, to be called ArvinMeritor Inc., will have combined revenues of $7.5 billion and will have its corporate headquarters in Troy, MI. All its operating units will remain at their current locations.
The merger will give Arvin, primarily a light vehicle component supplier, and Meritor, mostly a heavy truck component supplier, a broader customer base for their original equipment and aftermarket products.
The combined company will be 46% light vehicle OE, 18% aftermarket, 17% North American truck, 5% trailers, and 5% international trucks.
"We are in a consolidating industry both in the light and heavy duty truck industries, and we feel that scale is a critical element in going forward," says Bill Hunt, chairman and CEO of Arvin. "We will have leading positions in 11 major complementary product areas."
Hunt also says that some of Arvin's light vehicle technology, such as exhaust and emissions technology, will likely move up into medium- and heavy-duty trucks.
Larry Yost, chairman and CEO of Meritor, will be the new company's chairman and CEO. Hunt will serve as the new company's vice chairman and president and will move up to chairman when Yost retires.
Arvin Industries, with 1999 sales of $3.1 billion, is a leading manufacturer of automotive exhaust systems; ride control products; air, oil and fuel filters; and gas-charged lift supports.
Meritor, with 1999 sales of $4.5 billion, is a global supplier of a broad range of components and systems for commercial, specialty and light vehicle OEMs and the aftermarket.
The merger is subject to shareholder and regulatory approvals.