ZF Friedrichshafen AG announced it has successfully completed the acquisition of commercial vehicle technology supplier WABCO, having gained approval from all required regulatory authorities. The $7 billion acquisition was initially announced in late March of 2019. WABCO shares, previously listed on the New York Stock Exchange, cease public trading with immediate effect.
The deal combines two global industry heavyweights in commercial vehicle technology. With the addition of WABCO, ZF’s focus will be on expanding its commercial vehicle service portfolio and on operating customer business.
“The combination of these two successful enterprises will bring a new dimension of innovation and capability for commercial vehicle systems technology,” said Wolf-Henning Scheider, CEO of ZF Friedrichshafen AG. “Thanks to our perfectly complementary portfolios and competencies, we are able to offer unprecedented solutions and services for manufacturers and fleets globally. In this way, we are actively shaping the future of the changing transportation industry,
“Together, we will create added value for our customers, employees and shareholders alike. This acquisition marks a major milestone in the history of our company. With it, we are consistently continuing the transformation in the powertrain and in the field of digitalization.”
In the future, WABCO will operate as an independent division, Commercial Vehicle Control Systems, within ZF Friedrichshafen AG and become the 10th division of Germany-based ZF. The new Commercial Vehicle Control Systems division employs around 12,000 people at 45 locations worldwide and will work closely with ZF’s existing Commercial Vehicle Technology division, ZF’s aftermarket division and the global development team.
“We are closing this acquisition in an unprecedented social and economic situation,” Scheider said in reference to the Covid-19 pandemic and its impact. “We are currently focusing our efforts on protecting our employees, ramping up production, and securing our company’s liquidity. In the long term, this thoroughly prepared acquisition will make us even stronger for the future once we have overcome the immediate effects of the pandemic.”
Jacques Esculier, chairman and CEO of WABCO, has decided to retire and effective immediately, the division will be headed by newly appointed Fredrik Staedtler. Staedtler brings significant commercial vehicle experience, gained over the past decades working in the industry, most recently as head of ZF’s Commercial Vehicle Technology division.
The combination of ZF and WABCO brings an extensive product portfolio that encompasses conventional and electric drive and chassis components, a comprehensive suite of sensors as well as fully integrated, advanced braking, steering and driver assistance systems. Additionally, ZF can offer digital fleet management solutions and an extensive global network of aftermarket services for commercial vehicles.