Cummins Closes on Its Acquisition of Hydrogenics

Cummins Inc. (CMI) today announced that it closed on the previously announced acquisition of fuel cell and hydrogen production technologies provider Hydrogenics Corporation.

“We are thrilled to welcome the Hydrogenics employees to the Cummins family,” said Tom Linebarger, Chairman and CEO, Cummins Inc. “Hydrogenics is one of the world’s premier fuel cell and hydrogen production technologies providers and their expertise and innovative approach will strengthen Cummins’ fuel cell capabilities. This is another step forward as we continue to invest in a broad range of clean, fuel-efficient and high-performing products and technologies that deliver value to our customers.”

Cummins began developing its fuel cell capabilities more than 20 years ago and the acquisition of Hydrogenics with Air Liquide’s support accelerates Cummins’ ability to further innovate and scale hydrogen fuel cell technologies across a range of commercial markets. 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.

"Air Liquide and Cummins have a shared vision of the key role that hydrogen plays in the energy transition. As a shareholder, and more widely as a company, Air Liquide is highly supportive of a hydrogen-based society,” said Pierre Etienne Franc, CEO, The Hydrogen Company. “The two global companies, leaders in their sector, have complementary expertise in the development of hydrogen energy. Thanks to Cummins’ investment, we believe Hydrogenics technologies will be able to accelerate significantly their development."

Hydrogenics will report under Cummins’ Electrified Power Business Segment, led by Thad Ewald, Vice President – Corporate Strategy, and its operations will continue to be headquartered in Mississauga, Canada. Founded in 2018, the Electrified Power business designs and manufactures fully electric and hybrid powertrain systems along with innovative components and subsystems to serve commercial markets as they adopt electrification. To date, the business has introduced complete electrified powertrain solutions in six markets across seven applications and continues to launch market leading products with customers across the world.

The acquisition was completed for $15.00 per share, representing an enterprise value of approximately $290 million and follows the approval of Hydrogenics shareholders, the receipt of approvals from the Ontario Superior Court of Justice, and satisfaction of other customary closing conditions. Air Liquide will own approximately 19 percent of the company while Cummins maintains an approximately 81 percent ownership and will fully consolidate the entity in its financial statements. Hydrogenics will be delisted from the Toronto Stock Exchange and the NASDAQ upon receipt of the final required approvals.

Cummins continues to project that the company will return 75 percent of operating cash flow to shareholders this year in the form of dividends and share repurchases.

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