We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Meritor to Fortify Product Range With AxleTech Acquisition
Read MoreHide Full Article
Meritor, Inc. is set to acquire AxleTech, a Troy, MI-based company that engages in designing, manufacturing, and selling of drivetrain systems and components for a cash payment of roughly $175 million. Furthermore, Meritor signed the acquisition agreement with an affiliate of The Carlyle Group, a global investment company.
The deal is in sync with Meritor’s M2022 objective, which aims to improve worldwide sales by expanding core competencies along with an increasing tactical presence in adjacent markets. AxleTech’s product lineup will aid Meritor to widen its offering across off-highway, defense, specialty and aftermarket segments. AxleTech’s range of suspensions, axles and drivetrain components will allow Meritor to cater to customers.
The acquisition will diversify Meritor’s exposure in adjacent end-markets while driving growth, which will support its target of realizing more than $15 million in annual cost synergies by fiscal 2020. The combination of Meritor’s leading position in the on-highway market and AxleTech’s product portfolio will aid Meritor to access new as well as existing customers.
Subject to regulatory approvals, the acquisition is expected to be completed by fourth- quarter fiscal 2019. The acquisition will be financed through Meritor’s cash at hand and debt. After the acquisition, AxleTech will function under Meritor’s Aftermarket, Industrial and Trailer segment.
Price Performance
Over the past three months, shares of Meritor has gained 4.4% against the industry’s decline of 1.6%.
Cummins has an expected long-term growth rate of 8.4%. The stock has gained 9.2% in the past three months.
Ford has an expected long-term growth rate of 7.3%. The stock has gained 23.3% in the past three months.
Volvo has an expected long-term growth rate of 5%. Over the past three months, shares of the company have gained 3.8%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Meritor to Fortify Product Range With AxleTech Acquisition
Meritor, Inc. is set to acquire AxleTech, a Troy, MI-based company that engages in designing, manufacturing, and selling of drivetrain systems and components for a cash payment of roughly $175 million. Furthermore, Meritor signed the acquisition agreement with an affiliate of The Carlyle Group, a global investment company.
The deal is in sync with Meritor’s M2022 objective, which aims to improve worldwide sales by expanding core competencies along with an increasing tactical presence in adjacent markets. AxleTech’s product lineup will aid Meritor to widen its offering across off-highway, defense, specialty and aftermarket segments. AxleTech’s range of suspensions, axles and drivetrain components will allow Meritor to cater to customers.
The acquisition will diversify Meritor’s exposure in adjacent end-markets while driving growth, which will support its target of realizing more than $15 million in annual cost synergies by fiscal 2020. The combination of Meritor’s leading position in the on-highway market and AxleTech’s product portfolio will aid Meritor to access new as well as existing customers.
Meritor, Inc. Price and Consensus
Meritor, Inc. price-consensus-chart | Meritor, Inc. Quote
Subject to regulatory approvals, the acquisition is expected to be completed by fourth- quarter fiscal 2019. The acquisition will be financed through Meritor’s cash at hand and debt. After the acquisition, AxleTech will function under Meritor’s Aftermarket, Industrial and Trailer segment.
Price Performance
Over the past three months, shares of Meritor has gained 4.4% against the industry’s decline of 1.6%.
Zacks Rank & Other Key Picks
Meritor currently sports a Zacks Rank #1 (Strong Buy). A few other top-ranked stocks in the broader auto sector are Cummins Inc. (CMI - Free Report) , Ford Motor Company (F - Free Report) and AB Volvo (VLVLY - Free Report) . Cummins and Ford currently carry Zacks Rank #2 (Buy) while Volvo sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cummins has an expected long-term growth rate of 8.4%. The stock has gained 9.2% in the past three months.
Ford has an expected long-term growth rate of 7.3%. The stock has gained 23.3% in the past three months.
Volvo has an expected long-term growth rate of 5%. Over the past three months, shares of the company have gained 3.8%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>