Cummins has signed a letter of intent to acquire a 50% equity interest in Momentum Fuel Technologies from Rush Enterprises.
The acquistion will create a joint venture between Rush Enterprises and Cummins. The JV will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America, combining the strengths of Momentum Fuel Technologies’ compressed natural gas fuel delivery systems, Cummins’ powertrain expertise, and the engineering and support infrastructure of both companies.
The proposed transaction is expected to close later this year, subject to completion of customary pre-closing activities and entering into mutually agreeable transaction documentation.
The joint venture will offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors, which will be able to service both the engine and the fuel delivery system.
The partnership will benefit both customer bases by providing them with access to an extensive CNG vehicle parts and service network, Rush Enterprises officals said in a press release. Both Cummins’ and Rush Enterprises’ respective networks — which together represent over 250 locations in the U.S. and Canada — will be equipped with certified technicians and access to a comprehensive CNG vehicle parts inventory.
“The immediate environmental benefits of CNG and RNG, combined with upcoming regulatory requirements, will drive growth in natural gas vehicles for the foreseeable future,” said W.M. Rush, chairman, CEO and president of Rush Enterprises. “This partnership will enable Rush Enterprises to continue to provide unparalleled support to our customers through our mutual, wide-ranging portfolio of Cummins’ and RushCare aftermarket solutions and keep trucks up and running across the country.”