Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, October 28, 2022

Article Excerpt

CUMMINS INC., $244.78, symbol CMI on New York, designs, manufactures, distributes and services diesel, natural gas, electric, hybrid powertrains, and powertrain-related components, including control & fuel systems, automated transmissions, batteries, electrified power systems, hydrogen production, and fuel cell systems. Cummins serves customers in 190 countries through 500 company-owned and independent distributors and through 9,000 dealers. In August 2022, the company completed the acquisition of Meritor Inc. (symbol MTOR on New York), a Michigan-based auto parts supplier of drivetrain, mobility, braking and electric powertrain components for commercial and industrial vehicles. Cummins paid $36.50 a share for Meritor’s stock. That valued the company at $3.7 billion. Meritor’s revenues in 2021 were $3.9 billion. Approximately 60% was generated in North America, 21% in Europe, and the remainder in other parts of the world. Cummins expects the acquisition will immediately add to its earnings. It plans to generate $130 million in annual cost savings by the third year following closing. Meanwhile, on October 5, 2022, it announced that its…