Cummins Unit Completes Acquisition of Faurecia Plants
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Cummins Emission Solutions completed the acquisition of two Faurecia commercial vehicle manufacturing plants in Indiana and the Netherlands for $208.56 million, parent company Cummins Inc. said Oct. 2.
The deal for the commercial vehicle exhaust aftertreatment plants was originally announced in May. The plants are located in Cummins’ hometown of Columbus, Ind., and Roermond in the Netherlands.
Cummins worked in partnership with and was a customer of Faurecia for more than a decade before buying the plants. S&P 500 member Cummins wants to ensure a long-term supply of aftertreatment components and assemblies, it said.
The acquisition adds “significant technical and manufacturing resources and enhances Cummins’ existing portfolio,” Cummins said.
“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,” Cummins Emission Solutions Vice President Cary Chenanda said.
Today, @Cummins has announced the completed acquisition of designated portions of Faurecia’s commercial vehicle exhaust aftertreatment business in the United States and Europe. — Cummins Inc. (@Cummins) October 2, 2023
Cummins financed the deal using cash on the company’s balance sheet.
Faurecia is a unit of France’s Forvia Group, which was looking to divest $1.05 billion in assets. Faurecia will remain a supplier to Cummins in India, China, South Africa and South America.
Forvia was formed in 2022 from the merger of French interiors group Faurecia and German lights, sensors and power electronics specialist Hella. The former was divested from French automaker PSA Group ahead of its merger with Fiat Chrysler to form Stellantis in 2021.
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