Cummins Inc. (NYSE: CMI) acquires Meritor Inc.

(NYSE: MTOR) for $3,700 million (08/03/2022)

($ in millions)

Cummins Inc. Business Description
 International American
corporation that designs,
manufactures, and distributes
engines, filtration and power
generation.
 Specializes in diesel and
alternative applications.
Financial Overview1
Enterprise Value:
Market Cap:
Revenue:
EBITDA:
EV/EBITDA:
P/E:
1) As of TTM; 2) As of August 2, 2022; Sources: Bloomberg, Cummins Inc. and Meritor Inc.; 1)Yahoo Finance; 2) Barchart
Strategic Rationale
Expansion Into Electrification
 Accelerates Cummins Inc. initiative to
integrate new products for decarbonizing
their applications.
 Presents a new avenue of growth for
Cummins Inc. with Meritor’s expertise in
electric mobility with their ePowertrains.
Meritor Inc. Business Description  Meritor Inc. will continue to grow their core
operations of manufacturing and expand the
 American manufacturer of research of electrifying products.
automobile components for
military suppliers, trucks, and Direct Supply Chain
trailers.  Cummins Inc. absorbed Meritor’s facilities
 Globally sells drivetrains, across the globe for a wider network.
braking, suspension and electric  Combination of technologies allows for a
powertrain systems. more efficient supply chain and production.
Financial Overview2 Transaction Overview
$32,890.00 Enterprise Value: $2,587.27  Transaction Price: $3,700
31,030.00 Market Cap: 2,586.24  Announcement Date: February 22, 2022
24,789.00 Revenue: 3,833.00  Close Date: August 3, 2022
3,380.00 EBITDA: N/A  Form of Financing: $3,700 in cash
9.73 EV/EBITDA: N/A  Expected Annual Synergies: $130 by year
13.28 P/E: 10.70 three