Diesel engine maker Cummins Inc. said it agreed to sell a part of its light duty filtration operations to Industrial Opportunity Partners, Reuters reported Friday. Terms of the deal were not released. The sale is part of Cummins’ plans to streamline its business segments.
(Reuters) – Diesel engine maker Cummins Inc. said it agreed to sell a part of its light duty filtration operations to private equity firm Industrial Opportunity Partners LLC as it streamlines the segment to chase larger opportunities.
Cummins said “ever-tightening” global emission standards provide significant growth opportunities in the development and deployment of filtration products.
Cummins’ filtration business designs and manufactures filtration, coolant and chemical products. It is a part of the component segment, which accounts for about 23 percent of the company’s total revenue.
Cummins said the sale affects Cummins’ Kuss Filtration business in Findlay, Ohio, and the Filtration business at Bloomer, Wisconsin and Kuss operations in Sao Paulo, Brazil and Shanghai, China.
Kuss, the Bloomer plant and the other facilities produce light duty filtration products for smaller engines used in gasoline applications, including in-tank fuel filters, it said.
Cummins, which did not disclose terms of the deal, said it will continue operating the business during the transition period.
Shares of the company closed at $90.01 Thursday on the New York Stock Exchange (Reporting by Bijoy Koyitty in Bangalore; Editing by Saumyadeb Chakrabarty) (email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))