Meritor Buys Back AxleTech Unit

Meritor Inc. has agreed to acquire AxleTech International LLC, which the company divested in 2002, from The Carlyle Group for about $175 million.

Both companies are based in Troy, Mich., and produce driveline components for commercial vehicles. The deal is expected to close in the fourth quarter, at which time AxleTech will become part of Meritor's Aftermarket, Industrial and Trailer business.

AxleTech, which generated sales of $248 million last year, provides axle, braking and suspension systems for off-highway, defense and aftermarket applications. Meritor produces similar products for on-highway trucks.

Meritor was formed in 1997 when the former Rockwell International Inc. spun off its automotive business. AxleTech was sold to a private equity firm five years later and has had several different owners since then.

Carlyle purchased AxleTech in 2005, then sold it to General Dynamics in 2009. Carlyle reacquired AxleTech in 2015.

Last month, AxleTech sold its electric vehicle systems division to Indianapolis-based Allison Transmission Holdings Inc.