Cummins Closes on its Acquisition of Hydrogenics

Cummins, Inc.

COLUMBUS, Ind. — Cummins, Inc. (NYSE: CMI) announced on Sept. 9 that it closed on the previously announced acquisition of fuel cell and hydrogen production technologies provider Hydrogenics Corporation.

“We are thrilled to welcome the Hydrogenics employees to the Cummins family,” said Tom Linebarger, chairman and CEO of Cummins, Inc. “Hydrogenics is one of the world’s premier fuel cell and hydrogen production technologies providers.”

Hydrogenics’ “expertise and innovative approach will strengthen Cummins’ fuel cell capabilities,” Linebarger noted. “This is another step forward as we continue to invest in a broad range of clean, fuel-efficient and high-performing products and technologies that deliver value to our customers.”

Cummins began developing its fuel cell capabilities more than 20 years ago. The acquisition of Hydrogenics with Air Liquide’s support accelerates Cummins’ ability to further innovate and scale hydrogen fuel cell technologies across a range of commercial markets. Owning both fuel cell and hydrogen generation from electrolysis capabilities will enable the company to offer a full, differentiated hydrogen solution, from start to finish, seamlessly integrated for customers.

“Air Liquide and Cummins have a shared vision of the key role that hydrogen plays in the energy transition. As a shareholder, and more widely as a company, Air Liquide is highly supportive of a hydrogen-based society,” said Pierre Etienne Franc, CEO of the Hydrogen Company.

“The two global companies, leaders in their sector, have complementary expertise in the development of hydrogen energy. Thanks to Cummins’ investment, we believe Hydrogenics technologies will be able to accelerate significantly their development.”

Hydrogenics will report under Cummins’ Electrified Power Business Segment, led by Thad Ewald, VP of corporate strategy, and its operations will continue to be headquartered in Mississauga, Canada. Founded in 2018, the Electrified Power business designs and manufactures fully electric and hybrid powertrain systems, along with innovative components and subsystems to serve commercial markets as they adopt electrification.

To date, the business has introduced complete electrified powertrain solutions in six markets across seven applications, as it continues to launch market-leading products with customers worldwide.

The acquisition was completed for $15.00 per share. That represents an enterprise value of approximately $290 million. It follows the approval of Hydrogenics shareholders, the receipt of approvals from the Ontario Superior Court of Justice, and the satisfaction of other customary closing conditions.

Air Liquide will own approximately 19 percent of the company, while Cummins maintains an approximately 81 percent ownership and will fully consolidate the entity in its financial statements. Hydrogenics will be delisted from the Toronto Stock Exchange and the NASDAQ upon receipt of the final required approvals.

Cummins continues to project that the company will return 75 percent of operating cash flow to shareholders this year in the form of dividends and share repurchases.

About Cummins, Inc.

Cummins, Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from diesel and natural gas engines, to hybrid and electric platforms, as well as related technologies. Those include battery systems, fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

Headquartered in Columbus, Ind. since its founding in 1919, Cummins employs approximately 62,600 people who are committed to powering a more prosperous world through three global corporate responsibility priorities that are critical to healthy communities: education, environment and equality of opportunity. Cummins serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and over 7,600 dealer locations. Cummins earned about $2.1 billion on sales of $23.8 billion in 2018.