Cummins has entered into a definitive agreement to acquire, through a wholly-owned subsidiary, all the issued and outstanding shares of fuel cell systems provider Hydrogenics Corporation for US$15 per share in cash, other than shares already owned by The Hydrogen Company, representing an enterprise value of around US$290m.

Following the unanimous recommendation of the special committee of Hydrogenics board, all non-interested directors of Hydrogenics have unanimously approved the transaction and recommend Hydrogenics shareholders vote in favour of the transaction.

“We look forward to partnering closely with Hydrogenics’ team in the coming weeks as we work toward closing the transaction,” said Cummins chairman and CEO, Tom Linebarger.

“Upon closing, we will share more details about the acquisition and our strategy to offer a broad portfolio of power solutions to meet our customers’ needs.”

As a part of the transaction, The Hydrogen Company, a wholly-owned subsidiary of L’Air Liquide and Hydrogenics’ current largest equity shareholder, will maintain its ownership in Hydrogenics.

The closing of the acquisition of Hydrogenics is subject to the satisfaction of customary closing conditions for a court approved Plan of Arrangement transaction in Canada. The transaction is expected to close in the third quarter of 2019.