Cummins Acquires Parts of Faurecia's Commercial Vehicle Exhaust Business For €142M

Cummins Inc CMI has entered into a definitive agreement with Faurecia, a company of the FORVIA Group, to purchase two commercial vehicle manufacturing plants for €142 million.
The manufacturing facilities are located in Columbus, Indiana (U.S.), and Roermond, Netherlands.
The acquisition adds significant technical and manufacturing resources and enhances Cummins' existing mixer portfolio.
"This proposed acquisition would enable both organizations to meet long-term strategic goals and would preserve business operations and employment for talented employees within the two plants and related tech centers, while creating value for customers and suppliers across the entire supply chain," said Cary Chenanda, Vice President of Cummins Emission Solutions.
Faurecia has been a partner and supplier to Cummins for more than a decade.
The transaction is expected to close by the end of the calendar year.
Cummins intends to finance the transaction using cash on its balance sheet. It held $2.4 billion in cash and equivalents as of March 31, 2023.
Price Action: CMI shares closed higher by 0.62% at $218.03 on Monday.