Cummins to acquire engine braking and cylinder deactivation company to advance its path to a zero emissions future
Cummins Inc. (NYSE: CMI) today announced the signing of an agreement to acquire Jacobs Vehicle Systems (JVS), a subsidiary of Altra Industrial Motion Corp., and a supplier of engine braking, cylinder deactivation, start and stop and thermal management technologies. The agreement brings the addition of new technologies to provide growth opportunities for Cummins’ current and future advanced diesel engine platforms. The acquisition of JVS also secures critical USMCA qualified engine components for current and aftermarket products and expands on Cummins Turbo Technologies’ success with customers globally.
“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."
Cummins plans to maintain JVS’ customer relationships and offer improved value and other benefits to the customers of both companies. Operations from the acquisition will report into Cummins Turbo Technologies, a business unit led by Shon Wright, Vice President of Cummins Turbo Technologies, that resides within the company’s Components segment. “We’re excited about the prospect of welcoming employees from JVS into the Cummins organization and look forward to adding their deep engineering talent to complement our expertise as we work together to develop innovative and cost-effective products now, and in the future," said Wright.
The acquisition also represents another step forward in Cummins’ continued investment in key technologies to advance its path to zero emissions strategy that will reduce greenhouse gas emissions and lower the air quality impacts of their products. Engine braking and cylinder deactivation technologies will be key components to meeting current and future emissions regulations, and this acquisition would allow Cummins to better integrate valuable components with its emissions-leading medium- and heavy-duty engines.
Founded in 1961, JVS has roughly 600 employees and more than 60 years of experience in engine retarding and valve actuation systems for the commercial vehicle industry. Since then, more than nine million engine brakes have been produced by JVS for commercial vehicles throughout the world. There is also historical linkage between JVS and Cummins. In 1961, JVS introduced the first engine brake, commonly referred to as the “Jake Brake” for commercial vehicles, which was invented by Clessie Cummins, the founder of Cummins Inc.
"We believe this acquisition is a terrific move to continue the rich tradition of JVS innovation,” said Carl Christenson, Chairman and CEO of Altra. "The sale of JVS to Cummins will provide new opportunities to innovate and evolve industries that both companies have been part of for more than 60 years."
JVS has two primary manufacturing facilities in Bloomfield, CT (USA) and Suzhou, China, and Cummins expects to invest additional capacity and resources into their operations. JVS’ manufacturing footprint will also help Cummins meet USMCA requirements and further invest in the U.S.
This acquisition is subject to customary closing conditions, including receipt of applicable regulatory approvals, and is expected to close during this calendar year.
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, guidance, preliminary results, expectations, hopes, beliefs and intentions on strategies regarding the future. These forward-looking statements include, without limitation, statements relating to our plans and expectations for our revenues, EBITDA and agreement in principle to settle regulatory proceedings regarding our emissions certification and compliance process for pick-up truck applications. 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: any adverse consequences resulting from entering into the Agreement in Principle, including required additional mitigation projects, adverse reputational impacts and potential resulting legal actions; increased scrutiny from regulatory agencies, as well as unpredictability in the adoption, implementation and enforcement of emission standards around the world; evolving environmental and climate change legislation and regulatory initiatives; changes in international, national and regional trade laws, regulations and policies; changes in taxation; global legal and ethical compliance costs and risks; future bans or limitations on the use of diesel-powered products; failure to successfully integrate and / or failure to fully realize all of the anticipated benefits of the acquisition of Meritor, Inc. (Meritor); raw material, transportation and labor price fluctuations and supply shortages; aligning our capacity and production with our demand; the actions of, and income from, joint ventures and other investees that we do not directly control; large truck manufacturers' and original equipment manufacturers' customers discontinuing outsourcing their engine supply needs or experiencing financial distress, or change in control; product recalls; variability in material and commodity costs; the development of new technologies that reduce demand for our current products and services; lower than expected acceptance of new or existing products or services; product liability claims; our sales mix of products; uncertainties and risks related to timing and potential value to both Atmus Filtration Technologies Inc. (Atmus) and Cummins of the planned separation of Atmus, including business, industry and market risks, as well as the risks involving the anticipated favorable tax treatment if there is a significant delay in the completion of the envisioned separation; climate change, global warming, more stringent climate change regulations, accords, mitigation efforts, greenhouse gas regulations or other legislation designed to address climate change; our plan to reposition our portfolio of product offerings through exploration of strategic acquisitions and divestitures and related uncertainties of entering such transactions; increasing interest rates; challenging markets for talent and ability to attract, develop and retain key personnel; exposure to potential security breaches or other disruptions to our information technology environment and data security; political, economic and other risks from operations in numerous countries including political, economic and social uncertainty and the evolving globalization of our business; competitor activity; increasing competition, including increased global competition among our customers in emerging markets; failure to meet environmental, social and governance (ESG) expectations or standards, or achieve our ESG goals; labor relations or work stoppages; foreign currency exchange rate changes; the performance of our pension plan assets and volatility of discount rates; the price and availability of energy; continued availability of financing, financial instruments and financial resources in the amounts, at the times and on the terms required to support our future business; and other risks detailed from time to time in our SEC filings, including particularly in the Risk Factors section of our 2023 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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 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 SEC, which are available at http://www.sec.gov or at http://www.cummins.com in the Investor Relations section of our website.
Cummins Inc., a global power solutions leader, comprises five business segments – Components, Engine, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 75,500 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $735 million on sales of $34.1 billion in 2023.
