PE firm Wind Point Partners’ Global Tube, a maker of tubes used in cooling, heating and exhaust systems for trucks and off-road vehicles, will buy the exhaust business belonging to listed, Indiana-based Cummins Inc. The transaction is expected to close in March. Cummins’ shares traded up as of late afternoon Wednesday.
Chicago, IL, January 26, 2011 – Wind Point Partners announced that one of its portfolio companies, Global Tube, has entered into an agreement to purchase the exhaust business of Cummins Inc. (NYSE: CMI). The transaction is expected to close by the end of March.
Global Tube is a leading manufacturer of tubes used in emissions, coolant, heating, air intake, and exhaust handling applications for heavy and medium duty trucks and off-road vehicles, with operations in Illinois, Indiana, Tennessee and Changzhou, China. Cummins’ exhaust business designs and manufactures mufflers, silencers, tubes and tube assemblies used in emissions and exhaust handling applications for both on and off-road vehicles and has operations in Stoughton, Arcadia, Black River Falls and Viroqua, Wisconsin, in addition to Scoresby, Australia and Daman, India. The combined business will operate under the name Nelson Products upon close of the transaction.
Wind Point formed Global Tube in August 2010 with the acquisitions of Global Tube Form and Peoria Tube Forming Corp. Global Tube is led by Tom Gosnell, who has 30 years of experience in the commercial vehicle industry, most recently as President of ArvinMeritor’s $4 billion Commercial Vehicle Systems Group.
Michael Nelson, a managing director at Wind Point, commented “Completing acquisitions was a key value driver we had outlined when we started the Global Tube platform in partnership with Tom. This acquisition broadens our product lines and adds manufacturing capabilities in fast-growing markets, including India.”
Tom Gosnell said “This is a very exciting opportunity for us to invest in a business which is central to our strategy and has significant opportunity for growth. We are excited to combine these businesses under the Nelson Products banner, and we look forward to providing the high-quality products our customers have come to expect.”
About Wind Point Partners
Wind Point Partners is a private equity investment firm that manages commitments of approximately $2.5 billion. Wind Point focuses on partnering with top caliber CEOs to acquire middle market businesses where we can establish a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.
About Global Tube
Global Tube, headquartered in Fort Wayne, Indiana, is a leading manufacturer of tubes used in emissions, coolant, heating, air intake, and exhaust handling applications for heavy and medium duty trucks and off-road vehicles. The company utilizes a unique, specialized manufacturing process that permits complex manufacturing of very large diameter tubes. Global Tube, which sells products under the names National Tube Form, Southern Tube Form and Peoria Tube Forming Corp., has a strong reputation for flexible manufacturing capabilities and on-time delivery. More information can be found at www.globaltubeform.com.