M&A · Industrials · Motor Vehicle Parts & Accessories
Cummins Inc to acquire Meritor, Inc.
Announced Feb 22, 2022 · Closed Aug 3, 2022
Deal value$3.70BEV $3.57B
Premium48.0%To unaffected price
EV / Adj. EBITDA9.7x0.9x EV / Revenue
ConsiderationAll cash$36.50 per share
Transaction
- Acquirer
- Cummins Inc (CMI)
- Target
- Meritor, Inc.
- Buyer type
- Strategic
- Offer price per share
- $36.50
- Enterprise value
- $3.57B
- Status
- Closed Aug 3, 2022
Deal protections
- Break fee (target pays)
- $73.5M · 2.0%
- Reverse fee (buyer pays)
- $160M · 4.3%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Morgan Stanley
- To the target
- JPMorgan
- JPMorgan fee
- $5.0M
Sector context · Industrials
- Comparable deals
- 55 in the prior 24 months
- Premium
- 48.0% vs. 45.9% sector median
- EV / Adj. EBITDA
- 9.7x vs. 11.2x sector median
- Break fee
- 2.0% vs. 2.8% sector median
Timeline
- AnnouncedFeb 22, 2022
- Proxy filedMar 21, 2022
- Definitive proxyApr 18, 2022
- Shareholder voteMay 26, 2022
- ClosedAug 3, 2022
Valuation · fairness opinions
Precedent transactions$14.75$32.00
Discounted cash flow$28.75$38.25
Offer $36.50
Implied value per Meritor, Inc. share by analysis, from JPMorgan · DCF discount rate 9.75%–10.75%.