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Cummins And Eaton Announce $1.2 Billion Joint Venture
Updated April 12, 2017 6:35 AM | Filed under: Business
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(COLUMBUS) - Columbus-based Cummins Inc. and Dublin, Ireland-based Eaton Corp. plan to form a $1.2 billion joint venture focused on automated transmissions for medium- and heavy-duty commercial vehicles.

Under the terms of the agreement, Cummins will pay Eaton $600 million cash and both companies will have a 50 percent interest in the joint venture.

Representatives of both Cummins and Eatons say the venture will have no effect on either company's employees or production. Cummins has 9,500 employees in Indiana, with most based in Columbus.

The joint venture will do business as Eaton Cummins Automated Transmission Technologies. It will focus on the design, assembly, sales and support of future medium-duty and heavy-duty automated transmissions, and it will also include Eaton's current generation of these products.

The transaction is expected to close in the third quarter, pending regulatory approvals.

"Customers are focused on powertrain solutions that provide the best combination of technology, performance and quality," said Craig Arnold, Eaton chairman and chief executive officer. "Our joint venture with Cummins will leverage the technical strengths and experience of two industry leaders with long histories and deep industry expertise to provide superior automated transmission technology for our global customers."

"Our growth strategy includes expanding our product offerings and extending our global footprint by becoming the world's leading powertrain supplier," said Tom Linebarger, chairman and CEO, Cummins Inc. "Our JV with Eaton will deliver the most advanced automated transmissions and develop an integrated powertrain and service network that supports our customers like never before. Just as we've done for the past 100 years, we will use our experience in partnerships and technological expertise to ensure our customers' success."

Cummins makes, designs, distributes and sells diesel and natural-gas engines and related technologies. The company has about 55,000 employees worldwide and customers in about 190 countries. Last year, Cummins earned $1.39 billion on sales of $17.5 billion.

Eaton is a power management company that serves the aerospace, electrical, filtration, hydraulics, industrial, plastics and vehicles markets. It serves customers in more than 175 countries and has a workforce of about 95,000 people. The company has Indiana plants in Auburn and South Bend and an electrical supply store in Indianapolis.

In 2016, Eaton earned $1.9 billion on sales of $19.7 billion.

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