Cummins closes on Siemens’ commercial vehicle business
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Columbus-based Cummins Inc. (NYSE: CMI) says it has completed the acquisition of Siemens’ Commercial Vehicles business, a Germany-based supplier of electric drive systems. The purchase was completed through subsidiary Meritor Inc., which Cummins acquired in August for $3.7 billion.
Cummins says the Siemens’ deal has an enterprise value of about $200 million.
The company says the acquisition will allow it to accelerate its development of electrified power solutions, and “adds key capabilities in direct drive and transmission-based remote mount electric motors, inverters, software and related services which are critical elements in the next generation of electric powertrains.”
Siemens’ commercial vehicle division has operations in Germany and China, as well as the U.S.
“By combining our collective, deep knowledge of our industry and how our customers use our applications, we will innovate and advance key technologies,” said Cummins President and Chief Executive Officer Jennifer Rumsey. “This acquisition also reflects another key milestone in the execution of our strategy to reach net-zero emissions by 2050 in a way that is best for our customers and the planet.”
Former Siemens Commercial Vehicles CEO Mart Verschoor will assume the role of Vice President – Traction Systems within Cummins’ New Power segment.