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WABCO Vehicle Control Systems

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WABCO Vehicle Control Systems
Company typePublic
NYSE: WBC
IndustryComponent manufacture and supply for commercial vehicles
Predecessor
Founded1869; 155 years ago (1869), as Westinghouse Air Brake Company
FounderGeorge Westinghouse Jr.
DefunctMay 29, 2020; 4 years ago (2020-05-29)
FateAcquired by ZF Friedrichshafen and became the Commercial Vehicle Control Systems division of ZF[1]
Headquarters
Bern
,
Switzerland
Area served
Worldwide (39 countries, 28 manufacturing locations)
Key people
Jacques Esculier (chairman and CEO)
Productselectronic and active braking systems
aerodynamic and stability systems
suspension systems
transmission automation systems
fleet management systems
Servicescustomized aftermarket solutions[buzzword] and dedicated support for fleet operators, maintenance workshops and distribution partners
RevenueUS$2.63 billion (2015)
US$351 million (2015)
US$291 million (2015)
Number of employees
12000
Websitewabco-auto.com

WABCO Holdings, Inc. was a U.S.-based provider of electronic braking, stability, suspension and transmission automation systems for heavy-duty commercial vehicles.[2] In 2007, the Vehicle Control Systems was spun off as WABCO Holdings Inc., an American provider of electronic braking, stability, suspension and transmission automation systems for heavy-duty commercial vehicles. Their products are present in many commercial vehicles such as trucks, buses, trailers and off-highway vehicles but they only fill the niche roles.[3][4] WABCO was acquired by ZF Friedrichshafen in May 2020.

History

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WABCO logo

The Westinghouse Air Brake Company was founded in the U.S. in 1869 and acquired by American Standard in 1968. It was designated as American Standards' Vehicle Control Systems division. The earthmoving and mining product range was sold to Dresser Industries in 1984.[5] American Standard changed its name to Trane, Inc. and on July 31, 2007, Trane spun off its Vehicle Control Systems as WABCO Holdings, Inc. via a special dividend to its shareholders. The owners of Trane, Inc. stock received one share of WABCO Holdings for every three shares of Trane, Inc. which they held.[6] Trane, Inc. was acquired by Ingersoll-Rand the following year.[7]

Previously headquartered in Bern, Switzerland (having moved from Brussels, Belgium in February 2019),[8] WABCO employed more than 11000 people in 34 countries worldwide. In 2013, WABCO's total sales were $2,720.5 million, a rise of 10% over the previous year.[9] WABCO was a publicly traded company listed on the New York Stock Exchange as WABCO Holdings, Inc., with the stock symbol WBC.[10]

Acquisition by ZF Friedrichshafen

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On February 27, 2019, WABCO's stock price increased 8% on rumors of a takeover bid by a competitor and trading in the stock was suspended. The following day, a trade publication reported that WABCO had confirmed that it had "been approached" by German auto parts maker ZF Friedrichshafen and was "engaged in preliminary discussions concerning a potential transaction.”[11]

On March 28, 2019, ZF Friedrichshafen announced plans to acquire WABCO for $136.50 per share ($7 billion) in an all-cash transaction.[12] The offer represented a 13% premium above WABCO's February 26 stock price, according to The Wall Street Journal.[13] WABCO shareholders approved the acquisition in July 2019.[14]

In January 2020, the U.S. Department of Justice raised concerns about the market power that the combined entity would have if the acquisition was allowed to proceed. In a news release, a Justice Department spokesman said: “The merger, as originally structured, would have given ZF a monopoly over an essential steering systems component used in trucks and buses that move products and people across the United States.” WABCO was required to divest the steering systems business in order to proceed with the transaction.[15] The companies reached a settlement with the Department of Justice, and ZF completed the $7 billion takeover in May 2020.[16]

On 29 May 2020, WABCO was acquired by ZF Friedrichshafen through a merger agreement and thereafter became the Commercial Vehicle Control Systems division of ZF.[1]

Notable products

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WABCO Holdings' key product groups are brake actuators, air compressor/air management, foundation brake, anti-lock braking, conventional braking, electronic braking, air suspension, transmission automation, vehicle electronic architecture and stability control/support.[17] [18]

Markets

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Major customers for WABCO Holdings are commercial and consumer vehicle OEMs and commercial after-market parts suppliers. Commercial truck and bus OEMs - such as Daimler (largest customer; 13% of sales, 2010), Cummins, Paccar, and Volvo - account for the majority of sales (62% of sales, 2013). Commercial after-market suppliers represent a significant minority of sales (25% of sales, 2013). Trailer and consumer vehicle OEMs also contribute a small percentage of sales.[19][20]

WABCO Holdings primary market is in Europe (61% of sales, 2013). They get some business from Asia/Pacific region and much less from other regions of the world.[21]

North America Vehicle Control System and some compressor sales and support are provided by a joint venture (JV) with Meritor Inc. (formerly Rockwell Automotive) while Disc Brake sales and higher margin compressor sales are handled directly by offices in Rochester Hills, MI and Charleston, SC.

North American operations also has a division "WABCO Reman Solutions" formed to offer remanufacturing of various brands of defective automotive components as well as WABCO branded defective components.

See also

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References

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  1. ^ a b "ZF Completes WABCO Acquisition". 29 May 2020. Retrieved 11 Nov 2021.
  2. ^ WABCO Holdings Press Release on www.wabco-auto.com
  3. ^ WABCO Holdings. US SEC Form 10-K 2010
  4. ^ Reuters. 'Profile: WABCO Holdings, Inc.' Retrieved: July 31, 2011.
  5. ^ Campbell, Richard (September 30, 2016). "Classic Machines: The Caterpillar 639D elevating scraper". Contractor. Archived from the original on 2022-01-14. Retrieved 2019-11-25.
  6. ^ WABCO Holdings. US SEC Form 10-K 2010
  7. ^ WABCO Holdings. US SEC Form 10-K 2010
  8. ^ swissinfo.ch (15 Feb 2019). "Wabco car systems manufacturer moves HQ to Switzerland". SWI swissinfo.ch. Archived from the original on 2019-10-18. Retrieved 1 August 2019.
  9. ^ "WABCO's Sales Growth in 2013 Strongly Outperforms Volatile Global Market; Company Achieves New Record for Full Year Performance Earnings; Provides Guidance for 2014". WABCO. 13 Feb 2014. Retrieved 13 Feb 2014.
  10. ^ "NYSE Listings Directory – WABCO Holdings Inc". New York Stock Exchange. Retrieved 13 Nov 2008.
  11. ^ FreightWaves Staff (28 February 2019). "WABCO share price surges on takeover rumor". FreightWaves. Retrieved 26 August 2023.
  12. ^ "WABCO to be Acquired by ZF Friedrichshafen for $136.50 per Share in Cash". 28 Mar 2019. Archived from the original on 12 November 2021. Retrieved 11 Nov 2021.
  13. ^ Kellaher, Colin (March 28, 2019). "German Auto-Parts Maker to Buy Wabco Holdings for $7 Billion". Wall Street Journal. Retrieved 26 August 2023.
  14. ^ Sickles, David. "ZF to acquire WABCO". Fleet Equipment. Retrieved 26 August 2023.
  15. ^ "Justice Department Requires ZF and WABCO to Divest WABCO's Steering Components Business to Proceed With Merger". Office of Public Affairs, U.S. Department of Justice. 23 January 2020. Retrieved 26 August 2023.
  16. ^ Adler, Alan (29 May 2020). "ZF completes $7 billion takeover of Wabco Holdings. May 29, 2020". Freightwaves. Retrieved 2023-08-26.
  17. ^ WABCO Holdings. US SEC Form 10-K 2013
  18. ^ Reuters. 'Profile: WABCO Holdings, Inc.' Retrieved: July 31, 2014.
  19. ^ WABCO Holdings. US SEC Form 10-K 2013
  20. ^ Reuters. 'Profile: WABCO Holdings, Inc.' Retrieved: July 31, 2014.
  21. ^ WABCO Holdings. US SEC Form 10-K 2010
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