Diesel engine manufacturer Cummins is to acquire Hydrogenics, which makes hydrogen fuel cell systems.
It is paying $15 per share for all Hydrogenics’ shares other than 18.6 per cent owned by The Hydrogen Company. The deal values Hydrogenics at $290m.
Cummins chairman and chief executive Tom Linebarger said: “We look forward to partnering closely with Hydrogenics’ team in the coming weeks as we work toward closing the transaction. Upon closing, we will share more details about the acquisition and our strategy to offer a broad portfolio of power solutions to meet our customers’ needs.”
As a part of the deal, The Hydrogen Company, a wholly-owned subsidiary of L’Air Liquide, SA, and Hydrogenics’ current largest equity shareholder, will maintain its ownership in Hydrogenics.