Columbus-based Cummins Inc. plans to acquire Toronto-based hydrogen fuel cell maker Hydrogenics Corp. for about $290 million, Cummins announced Friday.
Under the terms of the deal, Cummins is expected to pay $15 for each outstanding Hydrogenics share, except for the shares held by Hydrogenics’ largest shareholder. That shareholder, The Hydrogen Co., will maintain its ownership stake in Hydrogenics, which is currently about 18.6% percent.
In addition to hydrogen fuel cells, Hydrogenics also makes hydrogen generation equipment. The 24-year-old company has about 185 employees. It posted a $10.4 million loss last year, on revenue of $33.9 million.
Pending approval by Hydrogenics shareholders, the deal is expected to close in the third quarter.
“Upon closing, we will share more details about the acquisition and our strategy to offer a broad portfolio of power solutions to meet our customers’ needs,” Cummins Chairman and CEO Tom Linebarger said in a written statement.
Cummins is best known for its diesel engines, but it also invests in alternative powertrain technologies, including both hydrogen and electric.
In June 2017, Cummins announced its intent to begin producing fully electric powertrains. Since then, the company has acquired Oregon-based electric motor and battery company Brammo Inc., England-based Johnson Matthey Battery Systems, and California-based Efficient Drivetrains, which makes electric and hybrid powertrains.
Cummins has begun delivering its first electric powertrains to customers.
Last month, Cummins announced it would invest $33 million to ramp up electric powertrain production at its Columbus Engine Plant.