Cummins Signs Agreement to Purchase SCR Doser Assets from Hilite International
COLUMBUS, Ind.--(BUSINESS WIRE)-- Cummins Inc. (NYSE: CMI) announced today that it has signed an agreement to acquire the assets associated with the emissions control products of Hilite International.
Hilite’s selective catalytic reduction (SCR) doser technology will become part of Cummins Emission Solutions (CES), allowing Cummins to serve all major market applications with a Cummins doser. SCR doser technology is a critical enabler for the performance and durability of SCR aftertreatment systems and represents a significant growth opportunity for Cummins.
The purchase price was not disclosed and the acquisition, expected to close in the third quarter of 2012, is subject to German regulatory approval. Hilite, based in Marktheidenfeld, Germany, is a portfolio company of 3i.
“Hilite’s technology complements our internal development efforts and the combined product portfolio will significantly enhance our overall aftertreatment components growth strategy,” said Srikanth Padmanabhan, Vice President and General Manager of CES. “Furthermore, Hilite’s strong European presence and their experienced team of engineers will be valuable to Cummins.”
Ulf von Haacke, Partner and Managing Director of 3i Germany, said Hilite has been a growing business under 3i’s leadership. “I am confident the SCR business and its employees will continue to flourish under Cummins’ ownership,” he said.
The market for aftertreatment products is driven by increasingly stringent government regulations of the emissions that diesel engines are allowed to release into the atmosphere. The primary standard drivers for new regulations are the United States’ Environmental Protection Agency and the equivalent body of the European Union. Over the past decade, both organizations have tightened the level of permissible emissions of particulate matter (PM), oxides of nitrogen (NOx), carbon monoxide (CO), and un-burnt hydrocarbons (HC). Mature market on-highway standards are now being implemented in emerging markets like China, India, Brazil, Russia as well as off-highway markets primarily in the United States, Europe and Japan.
Aftertreatment systems are comprised of a number of subsystems: controls, sensors, dosers, catalysts and substrates, and packaging. The effective integration of these subsystems is critical to the performance of the aftertreatment system and the overall engine system.
About Cummins
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins employs approximately 44,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. Press releases can be found on the Web at www.cummins.com.
Forward-looking disclosure statement
Information provided in this release that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our forecasts, expectations, hopes, beliefs and intentions on strategies regarding the future. Our actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including, but not limited to: the adoption and implementation of global emission standards; the price and availability of energy; the pace of infrastructure development; increasing global competition among our customers; general economic, business and financing conditions; governmental action; changes in our customers’ business strategies; competitor pricing activity; expense volatility; labor relations; and other risks detailed from time to time in our Securities and Exchange Commission filings, including particularly in the Risk Factors section of our 2010 Annual Report on Form 10-K. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.
Cummins Inc.
Janet Williams, Director - Corporate Communications,
317-610-2488
janet.williams@cummins.com
Source: Cummins Inc.
Released May 2, 2012