Cummins to sell exhaust business to Global Tube

user-gravatar

Cummins Inc. on Tuesday, Jan. 25, announced 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. The sale to Global Tube, terms of which were not disclosed, 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.

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. Cummins says the sale will allow Emission Solutions to place greater emphasis and resources on manufacturing products that are a critical part of the Columbus, Ind.-based company’s growth strategy. Cummins says ever-tightening global emissions standards provide it with significant growth opportunities in the development and deployment of aftertreatment technology.

Cummins Emission Solutions produces the diesel particulate filter and the selective catalytic reduction systems that are critical to the company meeting stringent new emissions regulations for on-highway diesel engines mandated by the U.S. Environmental Protection Agency in 2010. As other countries adopt tighter emissions standards in the future, Cummins says it 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,” says Srikanth Padmanabhan, vice president and general manager of 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.

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. Cummins and Global Tube say they are working to ensure a smooth transition for customers, suppliers, employees and the communities where the businesses are located.

“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,” says 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, Wis. Nelson, a familiar name in the exhaust business, will be revitalized under the new ownership.