Cummins Inc. completed the acquisition of 18.6% stake in Hydrogenics Corporation from The Hydrogen Company.
September 08, 2019
Share
Cummins Inc. (NYSE:CMI) agreed to acquire 18.6% stake in Hydrogenics Corporation (NasdaqGM:HYGS) from The Hydrogen Company for $53.1 million on June 28, 2019. Under the transaction, Cummins Inc. will acquire 3.54 million shares of Hydrogenics Corporation in exchange for class B common shares in the capital of a subsidiary of Cummins Inc. on a one-for-one basis. The class B common shares will be issued at a deemed issue price of $15.00 per class B common share. In a related transaction, Cummins Inc. entered into an arrangement agreement to acquire 81.4% stake in Hydrogenics Corporation from Fuzhou Bonded Zone Hejili Equity Investment Limited and others for approximately $240 million.
Cummins Inc. (NYSE:CMI) completed the acquisition of 18.6% stake in Hydrogenics Corporation (NasdaqGM:HYGS) from The Hydrogen Company on September 9, 2019.
Cummins Inc. specializes in designing, manufacturing, and selling diesel and gas motors and generators. Net sales break down by activity as follows:
- production of components (33.8%): filtration and exhaust equipment, turbochargers, alternators, cylinder heads, water pumps, injection systems, starters, etc.;
- manufacturing of diesel and gas motors (26.1%): for heavy equipment, trucks, light utility vehicles, industrial construction equipment, mine equipment, and agricultural and marine use;
- manufacturing of generators (9.2%);
- other (1%).
The remaining sales (29.9%) are from distribution to end users.
Net sales are distributed geographically as follows: the United States (56.7%), China (9.1%), India (4.9%) and other (29.3%).