As part of its ongoing quest to diversify from its diesel-engine roots, Columbus, Indiana-based Cummins Inc. acquired Troy, Michigan-based Meritor Inc. in a $3.7 billion deal that closed in August.
Cummins has 59,900 global employees who produce a range of engines and power-generating products—from internal-combustion-engine powertrains to electric-power-generation equipment, batteries, fuel-cell products and hydrogen-producing electrolyzers.
Meritor, which had 9,600 global employees pre-acquisition, is a leader in electric axle and brake technology.
Cummins said it acquired Meritor as a way to boost its electric and hybrid product offerings. Cummins’ New Power operating segment, which includes products powered by electricity or hydrogen, currently makes up a tiny portion of Cummins’ business, but the manufacturer has invested hundreds of millions of dollars over the last few years in these technologies.
Cummins has also set ambitious environmental goals that include working to reach net-zero carbon emissions by 2050.
The Meritor acquisition wasn’t Cummins’ only big business deal of the year.
In April, Cummins completed its $325 million acquisition of Bloomfield, Connecticut-based brake maker Jacobs Vehicle Systems Inc.
JVS designs and manufactures products for engine-braking, cylinder-deactivation and other technologies for commercial vehicles.
When announcing the planned acquisition in February, Cummins said the deal would help it comply with both current and future emissions regulations as well as certain provisions of the United States-Mexico-Canada Agreement.
Cummins also announced a planned spinoff this year.
In April, the company announced it had taken preliminary steps toward spinning off its filtration business into a separate publicly held company. During the third quarter, Cummins spent $16 million to prepare for the spinoff, but the company said it had no information to share about when the spinoff is expected to happen.•
Check out more year-in-review stories from 2022.