Cummins Inc. (NYSE:CMI) signed an agreement to acquire Jacobs Vehicle Systems, Inc. from Altra Industrial Motion Corp. (NasdaqGS:AIMC) for approximately $330 million on February 8, 2022. In the event that certain regulatory authorities fail to approve the transaction or take certain actions to temporarily or permanently enjoin the transaction, and the transaction is subsequently not consummated by the parties, (A) Altra will be entitled to a termination fee of $20 million and (B) the JVS business will be entitled to the right of first negotiation and the right of last refusal for certain specified manufacturing arrangements with Cummins. In 2021, Jacobs Vehicle Systems reported a total revenue of $193 million. Post deal completion, operations from the acquisition will report into Cummins Turbo Technologies, a business unit led by Shon Wright. The acquisition is subject to customary closing conditions, including receipt of applicable regulatory approvals, along with the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and is expected to close by the end of calendar year of 2022.

Sidley Austin LLP acted as the financial advisor and Pran Jha of Sidley Austin LLP acted as the legal advisor for Cummins Inc. Lazard Ltd (NYSE:LAZ) acted as the financial advisor and Thomas E. Dunn, Lauren Angelilli, Eric W. Hilfers, Margaret T. Segall, Jesse M. Weiss and Matthew Morreale of Cravath, Swaine & Moore LLP acted as legal advisors to Altra Industrial Motion Corp.

Cummins Inc. (NYSE:CMI) completed the acquisition of Jacobs Vehicle Systems, Inc. from Altra Industrial Motion Corp. (NasdaqGS:AIMC) for approximately $350 million on April 8, 2022.