MERITOR, INC. (NYSE:MTOR) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01. Completion of Acquisition or Disposition of Assets.

On October 1, 2017, Meritor, Inc. (the “Company”) closed on the sale of its interest in Meritor WABCO Vehicle Control Systems (the “Meritor WABCO JV”) to a subsidiary of its joint venture partner, WABCO Holdings Inc. The total purchase price for the sale was $250 million, and the Company also received a final partnership distribution of $8 million immediately prior to closing.

The Company will remain the exclusive distributor of a certain range of WABCO Holdings Inc.’s aftermarket products in the United States and Canada and the non-exclusive distributor in Mexico following the completion of the transaction, and the purchase agreement includes provisions regarding certain future options of the parties to terminate, at certain points during the first three and a half years, these distribution arrangements at an exercise price of between $225 million and $265 million based on the earnings of the business.

The foregoing description is only a summary of, and is qualified in its entirety by reference to, the terms of the Purchase and Option Agreement regarding the Meritor WABCO JV sale which was filed as Exhibit 10-a to the Company’s Current Report on Form 8-K filed September 18, 2017.

The unaudited pro forma financial statements of the Company giving effect to the foregoing transaction are attached hereto as Exhibit 99-a and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(b) Pro Forma Financial Information

The following pro forma condensed consolidated financial statements of the Company are included below:

Unaudited Pro Forma Condensed Consolidated Financial Information

The unaudited pro forma condensed consolidated financial information presented below is for informational purposes only and does not purport to represent, or be indicative of, what the results of operations or financial position of the Company would have been had the transactions specified below occurred on the dates indicated, or to project the results of operations or financial position of the Company for any future periods. The unaudited pro forma condensed consolidated financial information is subject to the assumptions and adjustments set forth in the accompanying notes. Management believes that the assumptions used and adjustments made are reasonable under the circumstances and all necessary adjustments have been made.

The unaudited pro forma condensed consolidated financial information should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the historical financial statements and related notes thereto of the Company for the nine months ended June 30, 2017 included in the Quarterly Report on Form 10-Q filed with the SEC on August 3, 2017, and for the year ended September 30, 2016 included in the Annual Report on Form 10-K filed with the SEC on December 1, 2016.

Unaudited pro forma condensed consolidated financial information as of June 30, 2017 and for the nine months ended June 30, 2017

As noted above, the Company completed the sale of its interest in the Meritor WABCO JV on October 1, 2017. The unaudited pro forma condensed consolidated statement of operations for the nine months ended June 30, 2017 and the unaudited pro forma condensed consolidated balance sheet at June 30, 2017 include adjustments to the historical financial statements to reflect the disposition of the Company's interest in the Meritor WABCO JV.

The historical financial information as of June 30, 2017 and for the nine months ended June 30, 2017 has been derived from the unaudited consolidated financial statements included in the Company's Quarterly Report on Form 10-Q filed with the SEC on August 3, 2017. The unaudited pro forma condensed consolidated statement of operations for the nine months ended June 30, 2017 was prepared as if the disposition of the Company's interest in the Meritor WABCO JV occurred on the first day of the fiscal year. The unaudited pro forma condensed consolidated balance sheet was prepared as if the disposition occurred as of June 30, 2017.

Unaudited pro forma condensed consolidated financial information for the year ended September 30, 2016

The historical financial information for the year ended September 30, 2016 has been derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K filed with the SEC on December 1, 2016.

The unaudited pro forma condensed consolidated statement of operations for the year ended September 30, 2016 was prepared as if the disposition occurred on the first day of the fiscal year.

(d) Exhibits

MERITOR INC Exhibit
EX-99.A 2 exhibit99a.htm UNAUDITED PRO FORMA STATEMENTS OF MERITOR,…
To view the full exhibit click here

About MERITOR, INC. (NYSE:MTOR)

Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.