Cummins to acquire Jacobs Vehicle Systems

10 January 2022

Cummins signed an agreement to acquire Jacobs Vehicle Systems (JVS), a subsidiary of Altra Industrial Motion Corporation, and a supplier of engine braking, cylinder deactivation, start and stop, and thermal management technologies. The JVS business, which generated $193 million in revenue in 2021, was sold for $325 million.

The agreement brings the addition of new technologies for Cummins’ current and future advanced diesel engine platforms. The acquisition of JVS also secures critical United States-Mexico-Canada Agreement (USMCA) qualified engine components for current and aftermarket products, Cummins said.

Cummins plans to maintain JVS’ customer relationships and offer improved value and other benefits to the customers of both companies. Operations from the acquisition will report into Cummins Turbo Technologies, a business unit that resides within the company’s Components segment.

The acquisition also represents another step forward in Cummins’ continued investment in technologies to reduce GHG and criteria emissions from their products. Engine braking and cylinder deactivation technologies will be key components to meeting current and future emissions regulations, Cummins said.

Founded in 1961, JVS has roughly 600 employees and more than 60 years of experience in engine retarding and valve actuation systems for the commercial vehicle industry. Since then, more than nine million engine brakes have been produced by JVS for commercial vehicles throughout the world. There is also historical linkage between JVS and Cummins. In 1961, JVS introduced the first engine brake, commonly referred to as the “Jake Brake” for commercial vehicles, which was invented by Clessie Cummins, the founder of Cummins Inc.

JVS has two primary manufacturing facilities in Bloomfield, CT, USA and Suzhou, China. Cummins expects to invest additional capacity and resources into these operations. JVS’ manufacturing footprint will also help Cummins meet USMCA requirements and further invest in the USA.

This acquisition is subject to customary closing conditions, including receipt of applicable regulatory approvals, and is expected to close during this calendar year.

Source: Cummins | Altra