Cummins Acquires Parts of Faurecia’s Exhaust Business – RVBusiness – Breaking RV Industry News
COLUMBUS, Ind. – Cummins Inc. (NYSE: CMI) today announced that 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.
“We announced our intent to acquire this portion of Faurecia’s business in May of 2023, and the Cummins, Faurecia and FORVIA teams have put forth incredible effort to push this across the finish line in recent months,” said Vice President of Cummins Emission Solutions Cary Chenanda. “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. I am energized by the opportunity to work alongside our outstanding new colleagues and to serve the customers that put their trust in us.”
Strategic rationale
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. The acquisition adds significant technical and manufacturing resources and enhances Cummins’ existing mixer portfolio. Cummins is committed to honoring Faurecia’s existing supplier and customer contracts in both facilities and will make the necessary investments to deliver on the contracts. Faurecia remains a supplier to Cummins in India, China, South Africa and South America.
Financing
Cummins financed the transaction, which had a total transaction value of €199.2 million, using cash on the company’s balance sheet.
Source: https://rvbusiness.com/cummins-acquires-parts-of-faurecias-exhaust-business/
