Cummins to buy Meritor; Tenneco sold, will go private among February M&A news


February was a crazy month in the M&A space, fueled by a manufacturer that took huge steps to diversify and build its capabilities for the future of trucking.

But February wasn’t just a busy month for Cummins. Several dealer and aftermarket operations also announced acquisitions during the busy month.

The first announcement in this month’s roundup comes from Bergey’s, which made headlines when it acquired Cumberland Truck and its 13 locations in Pennsylvania and Maryland. This month adds five truck dealership locations and eight truck parts stores to Bergey’s network. “Our goal is to build on Cumberland Truck’s success story by learning from each other and leveraging our combined resources, including our industry experts, to deliver more business solutions to our customers” , said Bergey CEO Mark Bergey.

The Pennsylvania market was also the scene of the acquisition of Truck Parts Unlimited by Point Spring & Driveshaft. The new location brings the Point Spring & Driveshaft network to ten stores in three states. “We believe this geographic expansion benefits our customers (new and existing),” Sean Ryan, president and treasurer of Point Spring & Driveshaft, said in a letter to suppliers. “Our goal continues to be to provide exceptional service to our customers and to be a leader in our industry.”

HOLT Truck Center announced its big acquisition on February 2, when it completed the purchase of Summit Truck Group locations in Oklahoma and the Wichita Falls, Texas territory. “We have deep roots in the on-road truck industry and are committed to ensuring that our customers continue to receive superior products and services to meet their diverse needs,” said Bert Fulgium, Vice President main, HOLT Truck Centers and product support for HOLT. CAT.

Rush Truck Centers of Canada followed, taking over the assets of Valley Truck and Spring Service in Pembroke, Ontario. “Valley Truck and Spring Service have been our valued partners for over 38 years and we are thrilled to officially add them to our dealer network as Rush Truck Centers of Canada. This acquisition is part of our strategy to grow and expand our geographic footprint throughout Ontario,” said Kevin G. Tallman, CEO, Rush Truck Centers of Canada.

Back in the service business, WW Williams announced Feb. 7 that it had acquired a truck service shop and mobile service business in Phoenix, which the company will operate as part of its Desert Fleet-Serv business. (DFS). “This acquisition allows us to continue to provide solutions to increase availability and performance while expanding our footprint to better serve customers in the Southwest region,” said David Ruff, WW Williams Division General Manager.

Cummins came next, announcing its first of two landmark acquisitions on February 9, when it was announced that the company would acquire Jacobs Vehicle Systems. The “Jake Brake”, which was invented by Cummins founder Clessie Cummins in 1961, will become part of the Cummins Turbo Technologies business unit. “We are excited to welcome JVS employees to the Cummins organization and look forward to adding their engineering talents to complement our expertise,” said Shon Wright, business unit manager.

Next, FleetPride announced its second acquisition of the year on February 15, with the purchase of MTR Fleet Services of Cumming, Georgia. “It is a pleasure to welcome the MTR Fleet Services team to FleetPride,” said Cory Anderson, FleetPride General Manager and Vice President of Service. “Jason Martin has developed a first-class team that is focused on total customer satisfaction. We look forward to expanding the solutions offered to their customers.”

On February 16, DealerShop and Resilience Capital Partners acquired Total Tool, a full-service distributor of automotive shop equipment in the northeastern United States. This move will strengthen DealerShop’s business presence in the Northeast United States. “Total Tool’s talented and experienced team has been distributing, servicing and repairing exceptional equipment for 40 years,” said Bill Gryzenia, president and CEO of DealerShop. “We look forward to improving the value of our comprehensive service for all customers.”

Another supplier acquisition came a day later when Stertil Group purchased Nussbaum Custom Lifts. “We are happy and proud to welcome Nussbaum to the Stertil Group, which will be a valuable addition and allow us to expand our presence in the industry and offer a complete selection of lifts. Nussbaum is a strategic partner highly reputable and excellent with a comprehensive program of innovative lifts for its specialist market in the light commercial vehicle segment,” said Ulbe Bijlsma and Bennie Stapensea, Stertil Group.

[RELATED: New year starts with flurry of acquisitions in supplier, dealer space]

The most important M&A news of the month – and probably the biggest trucking sales announcement since Navistar merged with Traton – was Cummins’ announcement that it intends to buy Meritor. The $3.7 billion sale is expected to close later this year. Cummins Chairman and CEO Tom Linebarger said “the addition of [Meritor’s] complementary strengths will help us address one of the most critical technology challenges of our time: developing economically viable zero-carbon solutions for commercial and industrial applications.”

But February was not made with big moves. The following day, it was announced that Apollo Funds would acquire Tenneco for $7.1 billion including debt. Michael Reiss, Apollo Partner, said, “Tenneco is a key solutions provider for global mobility markets with a longstanding commitment to innovation and high quality service. We look forward to working with the Tenneco team to build on the strong foundation in place today, investing in their platform and product categories for growth and delivering innovative solutions to customers.

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