Cummins on Tuesday said it will acquire two of Faurecia’s commercial vehicle manufacturing plants – Columbus, Indiana, and Roermond, Netherlands – for $153 million.
Faurecia has been a partner and supplier to Cummins for more than a decade,and divestment initiatives by its parent company FORVIA Group offers Cummins an opportunity to ensure the long-term supply of aftertreatment components and assemblies. The acquisition also adds significant technical and manufacturing resources and enhances Cummins’ existing mixer portfolio, positioning Cummins’ Emission Solutions business for long-term success.
It also allows Faurecia to focus on its exhaust activities on light vehicle ultra-low emission systems and its hydrogen roadmap. Earlier this month, Stellantis agreed to acquire 33.3% stake in Symbio, a leader in zero-emission hydrogen mobility and joint-venture between Faurecia and Michelin, who each also hold a 33.3% stake.
FORVIA Group is the seventh largest automotive supplier in the world with 257 industrial sites in 33 countries and 39 research and development centers.
Cummins has been active in acquiring complementary companies, having picked up Meritor and Jacobs Vehicle Systems last year.
“Cummins and Faurecia have a long partnership history,” said Cary Chenanda, vice president of Cummins Emission Solutions. “This proposed acquisition would enable both organizations to meet long-term strategic goals and would preserve business operations and employment for talented employees within the two plants and related tech centers, while creating value for customers and suppliers across the entire supply chain. Cummins is committed to meeting or exceeding global emissions regulations now and in the coming years, and I am energized by this unique opportunity to gain experienced technical and manufacturing resources that would carry us far into the future.”
Chenanda said Cummins will honor Faurecia’s existing supplier and customer contracts in both facilities and, following the close of the transaction, will make the necessary investments to deliver on the contracts. Cummins and the Columbus South and Roermond plants remain separate entities today and will continue to operate independently of each other until the acquisition closes.