Cummins Sells Diesel, Small Engine Filtration Business

Sept. 16, 2011
Seeks to dedicate resources to maximize efforts at meeting emerging global emission standards

Engine-builder Cummins Inc. agreed to sell its light-duty filtration operations to an investor group for an unreported price. Cummins’ Kuss Filtration business in Findlay, Ohio; the Cummins Filtration plant in Bloomer, Wisc.; and Kuss plants in Brazil and China, design and build various diesel engine filtering products, as well as light-duty filtration products for smaller gas engines.

Cummins Filtration manufactures air filtration systems, crankcase cooling systems, exhaust systems, and numerous other products for automotive and other vehicle engines.

The buyer is Industrial Opportunity Buyers LLC, a Chicago-based private-equity concern.

Hasnain Merchant, Cummins general manager of the light-duty filtration business, will be the CEO of the new organization. It will be named Kuss Filtration and headquartered in Findlay.

“This is a very exciting opportunity for the Light Duty Filtration business to be able to work with IOP, who will be dedicated to invest and grow the business,” according to Merchant. “IOP will work with the current management team to help drive operational improvements, implement lean manufacturing initiatives, accelerate cost structure improvements and pursue growth opportunities.”

More stringent global emission standards represent a growth opportunity for Cummins’ filtration business, the company said, and it added that selling the light-duty filtration operations will allow the remaining organization to devote more resources to manufacturing products that are a critical part of its growth strategy.

“Selling this part of our light duty filtration operations to a strong buyer like Industrial Opportunity Partners provides Kuss and the business in Bloomer with the opportunity to grow while allowing us to concentrate on markets that are core to Cummins long-range growth plans,” stated Cummins Filtration president Joseph Saoud.

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