BREAKING: CUMMINS SELLS EXHAUST BUSINESS
Tuesday, January 25th, 2011 -- 2:08 PM
Press Release:COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. (NYSE: CMI) announced today that it has entered into an agreement to sell its exhaust business to Global Tube, a portfolio company of Wind Point Partners, a private equity firm headquartered in Chicago, Ill. The sale to Global Tube affects Cummins? acoustic exhaust operations in Stoughton, Arcadia, Black River Falls and Viroqua, all in Wisconsin, as well as in Scoresby, Australia and Daman, India.
?It is more important than ever for CES to focus on our core business of providing aftertreatment systems and solutions for commercial vehicles?
Terms of the deal were not disclosed. Cummins? exhaust operations are part of the Company?s Emission Solutions business, which specializes in providing a range of aftertreatment solutions and technologies to control emissions in diesel engines.
The sale will allow Cummins Emission Solutions (CES) to place greater emphasis and resources on manufacturing products that are a critical part of Cummins? growth strategy. Ever-tightening global emission standards provide Cummins with significant growth opportunities in the development and deployment of aftertreatment technology.
For example, Cummins Emission Solutions produces the Diesel Particulate Filter and the Selective Catalytic Reduction systems that are critical to Cummins meeting stringent new emissions regulations for on-highway diesel engines mandated by the Environmental Protection Agency in 2010. As other countries adopt tighter emissions standards in the future, Cummins expects significantly higher demand for products made by CES ? both on Cummins engines and on those engines produced by other companies.
?It is more important than ever for CES to focus on our core business of providing aftertreatment systems and solutions for commercial vehicles,? said Srikanth Padmanabhan, Vice President and General Manager ? Cummins Emission Solutions. ?Selling the exhaust business to a strong buyer like Global Tube will enable us to focus on developing the technologies that will allow CES to continue growing in this vital market.? The exhaust business manufactures products such as bent tubes and small mufflers.
?This is a very exciting opportunity for us to invest in a business which is central to our strategy and has significant opportunity for growth,? said Thomas Gosnell, Chief Executive Officer of Global Tube. Gosnell, a former executive with Arvin Meritor and Rockwell Automotive and 30 year veteran of the Commercial Vehicle industry, has said that the new business will revive the name Nelson Products, with its headquarters in Stoughton, Wisc. Nelson is a familiar name in the exhaust business which will be revitalized under the new ownership.
The exhaust business is expected to transfer to Global Tube by the end of March. During the transition period, Cummins will continue operating the business, providing the products and support that customers expect. Cummins and Global Tube are working to ensure a smooth transition for customers, suppliers, employees and the communities where the businesses are located.
About Cummins
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in approximately 190 countries and territories through a network of more than 500 company-owned and independent distributor locations and approximately 5,200 dealer locations. The Company reported net income attributable to Cummins Inc. of $428 million on sales of $10.8 billion in 2009. P
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the company?s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the company?s actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Cummins Securities and Exchange Commission filings.
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