Cummins Inc. (NYSE:CMI) has announced that it has reached an agreement to sell its SEG GmbH subsidiary, based in Kempen, Germany, to Woodward Governor Company, subject to customary approvals. Terms of the deal, which is expected to close in the fourth quarter, were not disclosed.
SEG specializes in the design and manufacturing of measurement, control and protection products for power generation systems with an emphasis on the wind power generation segment. SEG, founded in 1969 in Krefeld, Germany, employs approximately 400 people and reported revenues of about 50 million euros ($60 million U.S.) in 2005.
Cummins first invested in SEG in 2001 and became the majority owner in 2005, with a 51 percent stake in the company. Schmitz Beteiligungs GmbH (SBG) owns the remaining 49 percent of SEG.
SEG is part of Cummins Power Generation Business, a fast-growing global provider of power generation systems, components and services and one of Cummins’ largest business segments. Cummins Power Generation reported sales of nearly $2 billion in 2005 – a 50 percent increase from 2003.
“SEG is a good company, but as Cummins Power Generation continues to grow around the world, we need to focus on the areas we consider strategic to our business,” said Tom Linebarger, Cummins Senior Vice President and President – Power Generation Business.
“Cummins appreciates the good work done by everyone at SEG over the past five years. We’re confident that SEG, with its dedicated workforce, will be a good fit for Woodward Governor.”
About Woodward
Woodward is the world’s largest independent designer, manufacturer, and service provider of energy control solutions for aircraft engines, industrial engines and turbines, and power generation and mobile industrial equipment. The company’s innovative control, fuel delivery, and combustion systems help customers worldwide operate cleaner, more reliable, and cost effective equipment. Woodward is headquartered in Rockford, Illinois, and serves global power generation, transportation, process industries, and aerospace markets from locations worldwide. Woodward is now listed in the new NASDAQ Global Select Market. Visit the company’s website at www.woodward.com.
About Cummins
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana, (USA) Cummins serves customers in more than 160 countries through its network of 550 Company-owned and independent distributor facilities and more than 5,000 dealer locations. Cummins reported net income of $550 million on sales of $9.9 billion in 2005. Press releases can be found on the Web at www.cummins.com.