September 10 (Renewables Now) - US engines and power generation products supplier Cummins Inc (NYSE:CMI) said on Monday it has finalised the acquisition of Canadian fuel cell and hydrogen production technologies firm Hydrogenics Corp (NASDAQ:HYGS).
The transaction saw Cummins take a stake of about 81% in Hydrogenics at USD 15 (EUR 13.6) per share, while L’Air Liquide SA will keep 19%. The enterprise value of the deal amounts to USD 290 million.
The acquisition is in line with Cummins’ strategy to invest in a wider range of clean and fuel-efficient products and technologies. “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,” the company said in the press statement.
Following the acquisition, the acquired entity will be consolidated in Cummins’ financial statements and will report under its Electrified Power Business Segment. Hydrogenics' head office will stay at Mississauga, Canada. Its shares will be delisted from the Toronto and the Nasdaq stock exchanges.
(USD 1.0 = EUR 0.905)