Cummins in talks to acquire European business
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Columbus-based Cummins Inc. (NYSE: CMI) is in negotiations with a global automotive supplier in France to acquire part of its commercial vehicle exhaust aftertreatment business. Faurecia said Thursday the deal, if completed, would be valued at more than $160 million.
Faurecia said the deal would include a manufacturing plant in Columbus and another in the Netherlands. The company said it has been a partner of Cummins since 2010.
“This transaction would reflect our long-lasting relationship with Cummins and would place Faurecia’s commercial vehicle aftertreatment activities within a committed engine manufacturer,” Faurecia CEO Patrick Koller said in a news release. “Cummins is a trusted partner, and this potential transaction would secure the plants’ activities. I am confident that our employees, customers, and the business overall would develop under the new ownership.”
A spokesperson for Cummins declined to provide additional details to Inside INdiana Business, citing the ongoing negotiations but said, “Both companies are committed to sharing details with key stakeholders once negotiations conclude.”
An estimated timeline for the sale to be completed was not provided. Faurecia said the transaction would be subject to regulatory approvals and customary closing conditions.
Faurecia has two additional locations in Columbus which are not part of the potential sale.
Faurecia is a subsidiary of Forvia Group. The company said the deal would contribute to its parent’s efforts to focus on light vehicle ultra-low emission activities.
Forvia Group is also in the process of divesting €1 billion worth of assets by the end of this year.