Cummins has announced that it has entered into a definitive agreement to acquire all the issued and outstanding shares of fuel cell systems provider Hydrogenics Corporation, through a wholly-owned subsidiary and representing an enterprise value of approximately $290m.
“We are excited that Cummins has reached an agreement with Hydrogenics to welcome the employees and innovations of one of the world’s leading fuel cell and hydrogen generation equipment providers to our company,” said Tom Linebarger, chairman and CEO, Cummins Inc.
“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 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.
The closing of the acquisition of Hydrogenics is subject to the satisfaction of customary closing conditions for a court approved Plan of Arrangement transaction in Canada and the approval of at least 66 per cent of the votes cast by shareholders of Hydrogenics, as well as the approval by at least 50 per cent of the votes cast by disinterested shareholders. The transaction is expected to close in the third quarter of 2019.
