Cummins Inc. announced Friday that it has entered into a an agreement to purchase a company that develops and manufactures fuel cell modules and hydrogen generation equipment.
Columbus-based Cummins, a global diesel engine maker and power systems manufacturer is continuing its foray into alternative power systems with the purchase of Hydrogenics Corporation.
Cummins has agreed to purchase, through a wholly-owned subsidiary, all the issued and outstanding shares of Hydrogenics for $15 per share in cash, representing a value of about $290 million, Cummins said.
“We are excited that Cummins has reached an agreement with Hydrogenics to welcome the employees and innovations of one of the world’s leading fuel cell and hydrogen generation equipment providers to our company,” Cummins Chairman and CEO Tom Linebarger said in a statement. “We look forward to partnering closely with Hydrogenics’ team in the coming weeks as we work toward closing the transaction.”
For more than a year, Cummins has been investing in and ramping up its new electrification business segment, including acquisitions of companies that possess technology and expertise that aid the electrification segment. In May, Cummins announced that it will locate the new headquarters of its new Electrified Power business segment at its Columbus Engine Plant, also known as Plant One, at 500 Central Ave. CEP will serve as the corporate hub and primary North American manufacturing center for Electrified Power.
Linebarger said Cummins will share at a later date more details about the acquisition and its strategy to “offer a broad portfolio of power solutions to meet our customers’ needs.”
Following the unanimous recommendation of the special committee of Hydrogenics Board of Directors, all non-interested directors of Hydrogenics unanimously approved the transaction and recommends that Hydrogenics shareholders vote in favor of the transaction, Cummins said.
As a part of the transaction, The Hydrogen Company, a wholly-owned subsidiary of L’Air Liquide, S.A., and Hydrogenics’ current largest equity shareholder, will maintain its ownership in Hydrogenics.
The transaction is expected to close in the third quarter of 2019, Cummins said.
