Columbus, Indiana-based Cummins Inc. is acquiring the assets of Oregon-based battery pack maker Brammo Inc., Cummins announced Monday.
Financial terms were not disclosed. Cummins said it expects the deal to close by Dec. 31.
The Oregon Business Journal, citing research by PitchBook, recently estimated Brammo's valuation at $101.3 million.
Brammo will continue to be based in Talent, Oregon, and will report to Cummins’ recently formed electrification business unit.
In a prepared statement, Cummins called the acquisition “an important milestone” in the company’s efforts to become “a global electrified power leader.”
Brammo was founded in 2002 as a performance motorsports company. The company shifted its focus to electric vehicles in 2007 when it began producing electric motorcycles, including the Empulse R. Brammo sold off its electric motorcycle division to Polaris Industries Inc. in 2015 and began focusing on developing electric vehicle technologies for a range of uses.
Cummins was founded in 1919 as a diesel engine maker, and diesels are still an important part of the company. But, in June, the company announced it was working on several new technologies, including its first all-electric powertrains, in response to industry trends.
The first all-electric Cummins engines are scheduled to hit the market in 2019. City buses and delivery vehicles will be the first to use the new engines, but down the road Cummins also intends to roll out electric engines suitable for longer-haul vehicles, including semis.
In August, Cummins unveiled a demo version of a fully electric semi engine, though the engine is not yet available for purchase.
"To be a leading provider of electrified power systems just as we are with diesel and natural gas-driven powertrains, we must own key elements and subsystems of the electrification network," Cummins Chairman and CEO Tom Linebarger said in a written statement. "By adding the expertise of Brammo and its employees to Cummins, we are taking a step forward in our electrification business and differentiating ourselves from our competition. As always, when markets are ready, Cummins will bring our customers the right power solution at the right time to power their success."