Cummins Inc. has entered into a definitive agreement to acquire, through a wholly owned subsidiary, all the issued and outstanding shares of fuel cell systems provider Hydrogenics Corporation for US$15.00 per share in cash, other than shares already owned by The Hydrogen Company, representing an enterprise value of approximately US$290 million.
“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 Cummins chairman and CEO Tom Linebarger. “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.”
Hydrogenics president and CEO Daryl Wilson said it takes vision and an innovative spirit to take on next generation technologies and provide the environment for them to grow.
“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, S.A., and Hydrogenics’ current largest equity shareholder, will maintain its ownership into 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. The transaction is expected to close in the third quarter of 2019.