- Cummins Inc. (NYSE:CMI) has agreed to acquire Jacobs Vehicle Systems, a subsidiary of Altra Industrial Motion Corp (NASDAQ:AIMC), for $325 million.
- Founded in 1961, Jacobs Vehicle Systems has roughly 600 employees and more than 60 years of experience in engine retarding and valve actuation systems for the commercial vehicle industry. It generated ~$193 million in revenue in 2021.
- The acquisition also secures critical USMCA qualified engine components for current and aftermarket products and expands on Cummins Turbo Technologies' success.
- "We expect that this transaction will provide both attractive financial returns and future growth opportunities for our company," commented Jennifer Rumsey, Cummins' President, and COO.
- Cummins plans to maintain JVS' customer relationships, and operations from the acquisition will report into Cummins Turbo Technologies, which resides within the company's Components segment.
- JVS has two primary manufacturing facilities in Bloomfield, Connecticut (U.S.) and Suzhou, China.
- Cummins held cash and equivalents of $3.2 billion as of December 31, 2021.
- Also Read: Cummins To Take Full Control Of Former JV With Westport
- Price Action: CMI shares are trading higher by 0.25% at $224.06 and AIMC by 1.14% at $48.10 on the last check Wednesday.
