Cummins to acquire fuel cell systems maker Hydrogenics

Jul 9, 2019   Tier Suppliers

Cummins Inc. 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.

The US heavy engine maker is to use a wholly-owned subsidiary to offer $15.00 per share in cash, applying to shares other than those already owned by The Hydrogen Company, representing an enterprise value of approximately $290 million. Following the unanimous recommendation of the special committee of Hydrogenics Board of Directors, all non-interested directors of Hydrogenics have unanimously approved the transaction and recommend that Hydrogenics shareholders vote in favour of the transaction.

“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.”

“It takes vision and an innovative spirit to take on next-generation technologies and provide the environment for them to grow,” said Daryl Wilson, President and CEO, Hydrogenics. “Hydrogenics has worked for 24 years to emerge as a global leader in fuel cell and hydrogen solutions in the power industry. We are deeply honoured to now join with Cummins on the transformative journey of next-generation clean power solutions.”

As a part of the transaction, The Hydrogen Company, a wholly-owned subsidiary of L’Air Liquide, and Hydrogenics’ current largest equity shareholder, will maintain its ownership in Hydrogenics.

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