ZF Friedrichshafen has agreed to buy truck parts supplier Wabco Holdings Inc. for approximately €6.2 billion ($7 billion).
The news was confirmed on Match 28, with chassis specialists ZF acquiring all outstanding shares of Wabco for $136.50 per share in an all-cash transaction which represents a 13 per cent premium to the closing stock price of $120.75 on February 26, 2019.
According to Reuters, ZF made its move to acquire Wabco in February this year.
The transaction will bring together two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry, combining Wabco’s capabilities in commercial vehicle safety and efficiency, including technologies involved in vehicle dynamics control, active air suspension systems, and fleet management systems with ZF’s leading position in driveline and chassis technologies for cars and commercial vehicles.
Jacques Esculier, Chairman and CEO of Wabco said: “This is the right combination at the right price at the right time for Wabco. We have a history of successful collaboration with ZF, including prototyping industry-first technologies, and the strategic fit between our two companies is compelling. After a thorough review, we are very pleased to announce a definitive agreement that we believe is in the best interest of Wabco shareholders.”
Wolf-Henning Scheider, CEO of ZF said: “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.”