FORVIA confirmed on Oct. 2, 2023, the successful completion of the transaction first announced on May 23, 2023, transferring designated parts of FORVIA’s commercial vehicle exhaust after-treatment business in Europe and in the United States to its long-standing partner Cummins. The total transaction value is EUR 199.2 million, according to FORVIA.
As part of this transaction, Cummins acquired two plants located in Roermond (Netherlands) and Columbus South (Indiana, US), as well as their related programs, FORVIA said. By integrating this business into its operations, Cummins expands its capabilities in providing innovative solutions for the commercial vehicle industry.
FORVIA said the decision to transfer this business to Cummins is part of its strategy to focus on ultra-low emission solutions for light vehicles, and its hydrogen roadmap to bring a comprehensive portfolio of hydrogen storage solutions to market.
The closing of this transaction is the final step in the execution of the €1 billion asset disposal program that FORVIA announced in Q2 2022, which goal was to accelerate the deleveraging of the Group after the acquisition of a majority stake in HELLA, the company said.
