Columbus, Indiana-based Cummins Inc. (NYSE: CMI) is to acquire, through a wholly-owned subsidiary, all the issued and outstanding shares of Hydrogenics Corporation (NASDAQ: HYGS: TSX: HYG), a Mississauga, Ontario, Canada-based fuel cell systems provider, for US$15.00 per share in cash, other than shares already owned by The Hydrogen Company, representing an enterprise value of approximately $290m.
As a part of the transaction, which is expected to close in the third quarter of 2019, 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.
Led by Tom Linebarger, Chairman and CEO, Cummins is a global power leader, whose complementary business units design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines to hybrid and electric platforms, as well as related technologies, including battery systems, fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.
Founded in 1919, Cummins employs approximately 62,600 people and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and over 7,600 dealer locations and earned about $2.1 billion on sales of $23.8 billion in 2018.
Led by Daryl Wilson, President and CEO, Hydrogenics provides hydrogen generation, energy storage and hydrogen power modules to its customers and partners around the world. The company has manufacturing sites in Germany, Belgium and Canada and service centers in Russia, Europe, the US and Canada.