Meritor (MTOR) Buys Fabco's Products, Extends Portfolio

A stock chart with a line and bar graph overlay Credit: Shutterstock photo

Meritor, Inc.MTOR announced the acquisition of the product portfolio and technologies of Fabco Holdings, Inc. and its subsidiaries. Terms of the deal were not revealed.

The addition of Fabco Holdings' product portfolio provides Meritor an expanded suite of complementary products that includes transfer cases, gear boxes, auxiliary transmissions and power take off (PTOs) units. These products are used for medium, heavy and extra heavy automobiles for on and off-highway, construction, defense, rail and other applications.

Further, these products will enable the company to offer a wider range of services to global customers. Also, the acquisition will aid the company to diversify its customer base and expand into the unexplored arenas of rail, oil and gas industries.

Meritor, Inc. Price and Consensus

Meritor, Inc. Price and Consensus | Meritor, Inc. Quote

Per Jay Craig, CEO and president of Meritor, the acquired portfolio of products and technologies provides the company with new products and customers in key markets. The company expects that synergies drawn from this latest buyout will contribute to a significant development in Specialty, Defense and Off-Highway business units.

This acquisition is in line with the company's M2019 plan to follow strategic growth initiatives and continue with its investments in new products and technologies.

Prior to the M2019 plan, the company has successfully achieved the objectives stated in its M2016 plan. The plan enhanced operational excellence and reduced debt, among other financial gains. It also obtained new customers, including PACCAR in North America, Scania in Europe, Daimler in India and DAF in South America.

Price Performance

Meritor's stock has surged 62.6% year to date, substantially outperforming the 23.1% rally of the industry it belongs to.

Zacks Rank & Other Key Picks

Meritor currently flaunts a Zacks Rank #1 (Strong Buy).

Other top-ranked automobile stocks are Allison Transmission Holdings Inc. ALSN , Ferrari N.V. RACE and Toyota Motor Corporation TM , all currently sporting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Allison Transmission has a long-term growth rate of 11%.

Ferrari has an expected long-term earnings growth rate of 14.1%.

Toyota has a long-term growth rate of 7%.

4 Surprising Tech Stocks to Keep an Eye On

Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.

See Stocks Now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Toyota Motor Corp Ltd Ord (TM): Free Stock Analysis Report

Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report

Meritor, Inc. (MTOR): Free Stock Analysis Report

Ferrari N.V. (RACE): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.