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Cummins to Purchase SCR Doser Assets from Hilite International

May 3, 2012

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Cummins Inc. will acquire the assets associated with the emissions control products of Germany's Hilite International. Hilite's selective catalytic reduction doser technology will become part of Cummins Emission Solutions,
allowing Cummins to serve all major market applications with a Cummins doser.

SCR doser technology is a critical enabler for the performance and durability of SCR aftertreatment systems and represents a significant growth opportunity for Cummins, says the company.

The purchase price was not disclosed and the acquisition, expected to close in the third quarter of 2012, is subject to German regulatory approval. Hilite, based in Marktheidenfeld, Germany, is a portfolio company of 3i.

"Hilite's technology complements our internal development efforts and the combined product portfolio will significantly enhance our overall aftertreatment components growth strategy," says Srikanth Padmanabhan, vice president and general manager of CES. "Furthermore, Hilite's strong European presence and their experienced team of engineers will be valuable to Cummins."

The market for aftertreatment products is driven by increasingly stringent government regulations of the emissions that diesel engines are allowed to release into the atmosphere. The primary standard drivers for new regulations are the United States' Environmental Protection Agency and the equivalent body of the European Union. During the past decade, both organizations have tightened the level of permissible emissions of particulate matter, oxides of nitrogen, carbon monoxide and un-burnt hydrocarbons.

Mature market on-highway standards are now being implemented in emerging markets such as China, India, Brazil, Russia as well as off-highway markets primarily in the U.S., Europe and Japan.

Aftertreatment systems are composed of a number of subsystems: controls, sensors, dosers, catalysts and substrates, and packaging. The effective integration of these subsystems is critical to the performance of the aftertreatment system and the overall engine system.

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