ZF has signed the agreement for the acquisition of Wabco
ZF, which from its headquarters of Friedrichshafen exercises world leadership in the design and construction of transmissions and systems for road and industrial applications, recently announced that it signed a definitive agreement for the acquisition of Wabco. The two companies will so create an important global supplier of integrated mobility systems for commercial and industrial vehicles. The resulting company will have a turnover of around 40 billion euros.
Wabco is a global supplier of braking control systems, technologies and services that improve safety, efficiency and connectivity of commercial vehicles including trucks, buses and trailers. Its diverse products and services include integrated braking systems and stability control, air suspension systems, transmission automation controls. As well as aerodynamics, telematics, and fleet management solutions. Wabco generated € 3.3 billion in revenues in 2018 and has some 16,000 employees in 40 countries.
The words of the two parts
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. For ZF the acquisition of a specialist and leader for commercial vehicle braking systems means adding a stable and growing business segment and enables our existing commercial vehicle division to expand its expertise in vehicle dynamics control. This will create the foundation for ZF to offer comprehensive systems for safe and automated mobility solutions for passengers and goods to our customers. This is also in the best interest of our owners, the Zeppelin Foundation and the Dr. Jürgen and Irmgard Ulderup Foundation, as the transaction will result in a sustainable strengthening of ZF».
Jacques Esculier, Chairman and CEO of Wabco, added: «Joining forces with highly respected ZF will create a leading global technology company well positioned to capitalise on future demand for autonomous, efficient and connected commercial vehicles. We have a long history of successful collaboration to develop innovative technologies with ZF with both companies sharing an uncompromising drive for excellence, passion for innovation, and exceptional customer focus».
All part of ZF’s development strategy
The acquisition is part of ZF’s Next Generation Mobility strategy and will expand the company’s expertise to include commercial vehicle braking solutions for the first time. This plays a central role for the control of automated driving functions. Including emergency braking manoeuvres of trucks and trailers. Following the acquisition, customers of both companies will have a partner in ZF who can offer them a fully integrated system approach, new drive systems for E-Mobility and autonomous driving functions.
ZF expects that automated driving functions will primarily be implemented for commercial vehicles and in areas with low complexity and traffic (e.g. factory sites, airports, agriculture). The acquisition of Wabco is consistent with ZF’s goal to develop and deliver technology solutions that make cars and commercial vehicles see, think and act in order to reduce emissions and increase road safety.
Konstantin Sauer, CFO of ZF, also added: «The intended strategic acquisition of Wabco comes at a good time for ZF. Following the successful integration of TRW, ZF has significantly reduced its debt levels. In fact, we overachieved in delivering our debt reduction targets. Wabco is a healthy and growing company with a strong cash flow profile that makes it a seamless fit with ZF and supports the implementation of our strategy».