Cummins Acquires Part Of Faurecia's Commercial Vehicle Exhaust Aftertreatment Business For €199.2M

Cummins Inc CMI said Cummins Emission Solutions completed its acquisition of two Faurecia commercial vehicle manufacturing plants and their related activities, one in Columbus, Indiana (U.S.), and one in Roermond, Netherlands.

Faurecia is a global automotive technology leader and company of the FORVIA Group.

The total transaction value of the deal amounted to €199.2 million and is financed using cash on Cummins' balance sheet.

The acquisition adds significant technical and manufacturing resources and enhances Cummins' existing mixer portfolio.

"This acquisition provides an opportunity for the Cummins Emission Solutions business to ensure continued access to the technology and facilities it needs to meet current and future demand for low-emissions products and to ensure continuity for both the employees and customers of the acquired manufacturing facilities," said Vice President of Cummins Emission Solutions Cary Chenanda.

Faurecia has been a partner and supplier to Cummins for more than a decade, and the FORVIA Group's divestment initiatives offered Cummins an opportunity to ensure the long-term supply of aftertreatment components and assemblies.

Cummins held $2.3 billion in cash and equivalents as of June 30, 2023.

Price Action: CMI shares closed lower by 1.23% at $228.46 on Friday.