Volkswagen Group introducing worldwide Sustainability Rating for suppliers
Bloom Energy announces hydrogen-powered energy servers to make always-on renewable electricity a reality

Cummins to acquire fuel-cell provider Hydrogenics

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 $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 recommends 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. 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.

—Tom Linebarger, Chairman and CEO, Cummins Inc.

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 in 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, including, without limitation, receipt of court approval pursuant to the Canada Business Corporation Act and the approval of at least 662/3% of the votes cast by shareholders of Hydrogenics as well as the approval by at least 50% of the votes cast by disinterested shareholders, which excludes The Hydrogen Company. The transaction is expected to close in the third quarter of 2019.

Morgan Stanley & Co. LLC is serving as financial advisor, and Gowling WLG (Canada) LLP and Barnes & Thornburg LLP are serving as legal counsel to Cummins.

Comments

SJC

This is great, hedging the future.

HarveyD

Or, is this to reduce competition from FCs?

SJC

Cummins is Synonymous with Standby Power
Here are just a few of the reasons Cummins PowerCommand®
systems are the standby power industry leader:
https://www.cummins.com/generators/standby-power

Herman

Harvey, what exactly are you implying here?

HarveyD

It is well known that FCs are fully adapted to cleaner quieter standby power units. In the near future, it will take a major part of the market from current diesel units.

Buying then off could be a way to delay the change over?

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)