Cummins Inc. announced Monday that it has closed on its purchase of a company that develops and manufactures fuel cell modules and hydrogen production technologies.
The Columbus-based Fortune 200 company purchased Hydrogenics Corporation for $15 per share, representing a value of about $290 million.
Cummins, which began developing its fuel cell capabilities more than 20 years ago, is continuing its foray into alternative power systems with the acquisition. The global diesel engine maker and power systems manufacturer said owning both fuel cell and hydrogen generation from electrolysis capabilities will enable the company to innovate and scale hydrogen fuel cell technologies across a range of commercial markets.
“Hydrogenics is one of the world’s premier fuel cell and hydrogen production technologies providers, and their expertise and innovative approach will strengthen Cummins’ fuel cell capabilities. This is another step forward as we continue to invest in a broad range of clean, fuel-efficient and high-performing products and technologies that deliver value to our customers,” Cummins Chairman and CEO Tom Linebarger said.
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.
The Electrified Power business, which started in 2018, designs and manufactures fully electric and hybrid powertrain systems, components and subsystems to serve commercial markets as they adopt electrification.
In May, Cummins announced that it will locate the new headquarters of its 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.
Hydrogenics will report under Cummins’ Electrified Power Business Segment, and its operations will continue to be headquartered in Mississauga, Canada.
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. Air Liquide will own about 19 percent of the company while Cummins will own 81 percent.
