Cummins Selling Exhaust Business, Will Focus Resources on Emissions Controls

Global Tube will revive Nelson Products brand

Engine builder Cummins Inc. has agreed to sell its exhaust business for an unrevealed price to Global Tube, and indicates it made the move in order to devote new emphasis and resources to its emissions technologies.

Global Tube is a company backed by Wind Point Partners, a Chicago private-equity firm. The Cummins Emission Solutions operations affected by the sale to Global Tube include the acoustic exhaust product line manufactured at plants in Arcadia, Black River Falls, Stoughton, and Viroqua, Wis., and at Scoresby, Australia, and Daman, India. These plants manufacture a range of after-treatment products and technologies to control emissions in diesel engines.

Cummins announced the sale would be complete by the end of the first quarter of 2011. It will continue to operate the businesses during the transition period.

“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,” stated Global Tube CEO Thomas Gosnell. He added that the exhaust business will resume the name Nelson Products, and it will have its headquarters in Stoughton, Wis.

Columbus, Ind.-based Cummins designs and manufactures engines and powertrain products, including fuel systems, controls, air handling systems, filtration systems, emission solutions and electrical power-generation systems. The company emphasized that the sale of Cummins Emission Solutions will allow it to put greater emphasis and resources toward “products that are a critical part of Cummins’ growth strategy. Ever-tightening global emission standards provide Cummins with significant growth opportunities in the development and deployment of after-treatment technology,” it stated.

As example of its growth strategy, Cummins cited its Diesel Particulate Filter and Selective Catalytic Reduction systems that meet the U.S. Environmental Protection Agency’s 2010 emissions regulations for on-highway diesel engines. It indicated demand for those products will grow as other countries adopt tighter emissions standards.

“It is more important than ever for CES to focus on our core business of providing after-treatment systems and solutions for commercial vehicles,” stated Cummins Emission Solutions v.p. and general manager Srikanth Padmanabhan,. “Selling the exhaust business to a strong buyer like Global Tube will enable us to focus on developing the technologies that will allow CES to continue growing in this vital market.” The exhaust business manufactures products such as bent tubes and small mufflers.

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