Columbus-based Cummins Inc. (NYSE: CMI) has announced plans to acquire a fuel cell systems provider in Canada. The deal for Hydrogencis Corp. (Nasdaq: HYGS) is valued at approximately $290 million and has been approved by the Hydrogenics board of directors.
The transaction will see Cummins acquire all of the issued and outstanding shares of Hydrogenics. However, the company’s current largest equity shareholder, The Hydrogen Co., will maintain its ownership in Hydrogenics.
"It takes vision and an innovative spirit to take on next generation technologies and provide the environment for them to grow," Daryl Wilson, chief executive officer of Hydrogenics, said in a news release. "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 acquisition is expected to close in the third quarter. Cummins CEO Tom Linebarger says the company will share more details about the acquisition and how it fits into Cummins’ portfolio after the deal is complete.