Indiana-based Cummins Inc. has entered into a definitive agreement to acquire, through a wholly owned subsidiary, all the issued and outstanding shares of Hydrogenics Corp., an Ontario-based developer and manufacturer of hydrogen fuel cell modules and hydrogen generation equipment.
As part of the transaction, The Hydrogen Co., a wholly owned subsidiary of L’Air Liquide S.A. and Hydrogenics’ largest equity shareholder, will maintain its ownership in Hydrogenics. Cummins is acquiring Hydrogenics for $15.00 per share in cash – other than shares already owned by The Hydrogen Co. – 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 deal and recommend that Hydrogenics shareholders vote in favor 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,” says Tom Linebarger, chairman and CEO of Cummins. “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,” notes Daryl Wilson, president and CEO of 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 honored to now join with Cummins on the transformative journey of next-generation clean power solutions.”
The closing of the acquisition, also subject to customary closing conditions in Canada, is expected in the third quarter.