Cummins to buy majority stake in Hydrogenics through friendly deal

MISSISSAUGA, Ont. – Cummins Inc. is moving to take a majority ownership stake in Hydrogenics Corp. in a friendly deal that values the Canadian hydrogen fuel cell company at about $380 million.

Hydrogenics shares were halted ahead of the announcement that Cummins is offering US$15 in cash or shares to buy out other shareholders. The stock fell Friday to $19.49 in Toronto and US$14.91 on Nasdaq after trading resumed.

Hydrogenics has essentially doubled in value since dipping to a close of US$7.31 on May 9.

Cummins is offering to pay US$15 cash to other Hydrogenics shareholders except for The Hydrogen Company, which will remain an minority owner with about 18.6 per cent of the total shares.

Cummins designs, manufactures and distributes a range of power solutions, including diesel engines, battery systems and electrical power generation systems.

Hydrogenics is focused on technologies for hydrogen power modules, hydrogen generation and energy storage.

Companies in this story: (TSX:HYG)