Cummins Acquires Braking Manufacturer
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Columbus-based Cummins Inc. (NYSE: CMI) says it is buying Jacobs Vehicle Systems, a Connecticut-based manufacturer of engine braking and cylinder deactivation systems. Our partners at the Indianapolis Business Journal report the deal is valued at $325 million.
Cummins says the acquisition represents a step forward in the company’s zero emissions strategy to reduce greenhouse gas emissions.
JVS, which is a subsidiary of Altra Industrial Motion Corp, has more than 60 years of experience in engine retarding and valve actuation systems for the commercial vehicle industry.
The cylinder deactivation technology turns off a number of cylinders when the vehicle is cruising. That in term improves fuel efficiency, according to the company.
“JVS brings engineering expertise, best in class products and key manufacturing capabilities to Cummins that will allow us to continue developing component technologies that deliver market leading performance and emissions,” said Jennifer Rumsey, Cummins’ President and Chief Operating Officer. “We expect that this transaction will provide both attractive financial returns and future growth opportunities for our company.”
JVS employs 600 employees. In 1961, the company introduced the first engine brake, known as the “Jake Brake,” which is used by commercial vehicles. It was invented by Clessie Cummins, the founder of Cummins Inc.
This acquisition is subject to customary closing conditions, but the companies expect to close the deal this year.