ZF to acquire Wabco in blockbuster deal

by Truck News

FRIEDRICHSHAFEN, Germany – ZF has signed a definitive agreement to acquire Wabco, forming an integrated systems provider for commercial vehicle technologies with annual sales totaling about US$45 billion.

The deal is valued at about US$7 billion.

Wabco is a global supplier of braking control systems, technologies and services for trucks, buses and trailers. Its offerings include integrated braking systems and stability control, air suspension systems, transmission automation controls and aerodynamics, telematics and fleet management products.

“We believe that, together with Wabco, ZF can form the world’s leading integrated systems provider for commercial vehicle technology, creating long-term value and security for its customers, employees and owners,” said Wolf-Henning Scheider, CEO of ZF. “For ZF the acquisition of a specialist and leader for commercial vehicle braking systems means adding a stable and growing business segment and enables our existing commercial vehicle division to expand its expertise in vehicle dynamics control. This will create the foundation for ZF to offer comprehensive systems for safe and automated mobility solutions for passengers and goods to our customers.”

Jacques Esculier, chairman and CEO of Wabco, added “Joining forces with highly respected ZF will create a leading global technology company well positioned to capitalize on future demand for autonomous, efficient and connected commercial vehicles. We have a long history of successful collaboration to develop innovative technologies with ZF with both companies sharing an uncompromising drive for excellence, passion for innovation, and exceptional customer focus.”

ZF said the planned acquisition is part of its Next Generation Mobility strategy, which will expand its expertise to include commercial vehicle braking systems for the first time. ZF will be able to offer an integrated systems approach, including new drive systems for e-mobility and autonomous driving.

“The intended strategic acquisition of Wabco comes at a good time for ZF. Following the successful integration of TRW, ZF has significantly reduced its debt levels,” said Konstantin Sauer, chief financial officer of ZF. “In fact, we overachieved in delivering our debt reduction targets. Wabco is a healthy and growing company with a strong cash flow profile that makes it a seamless fit with ZF and supports the implementation of our strategy.”

 

 


Have your say


This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.

*