Cummins’ $325 Million Acquisition of Jacobs Vehicle Systems

Cravath represented Altra in connection with the transaction.

Altra Industrial Motion Corp. (“Altra”), a leading global manufacturer and supplier of motion control, power transmission and automation products, has entered into an agreement to sell its Jacobs Vehicle Systems business to Cummins Inc., a leader in the heavy-duty trucking industry, for $325 million.

The deal is expected to be finalized by the end of the year, following the usual closing conditions and regulatory approvals.

Cummins specializes in diesel and alternative fuel engines and generators, and related components and technology. 

Jacobs Vehicle Systems, the world’s leading manufacturer of diesel and natural gas engine retarding systems and valve actuation mechanisms, provides engine brakes, emissions solutions to medium and heavy-duty engine makers around the world.

The Cravath team was led by partner Thomas E. Dunn and included associates Saagar Kaul, Gene Choi and Jason O. Rooindej on M&A matters; partner Lauren Angelilli and associates Leon B. Dalezman and Duncan H. Hardell on tax matters; partner Eric W. Hilfers and associate Christopher C. Gonnella on executive compensation and benefits matters; partner Margaret T. Segall and of counsel Jesse M. Weiss on regulatory matters; partner Matthew Morreale on environmental matters; practice area attorney Anthony N. Magistrale and associate Daniel M. Barabander on intellectual property matters; and practice area attorney Brian M. Budnick on real estate matters. Michael Pelle also worked on tax matters and Chris Moon also worked on executive compensation and benefits matters.

Involved fees earner: Lauren Angelilli – Cravath Swaine & Moore; Daniel Barabander – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore; Gene Choi – Cravath Swaine & Moore; Leon Dalezman – Cravath Swaine & Moore; Thomas Dunn – Cravath Swaine & Moore; Margaret Segall D’Amico – Cravath Swaine & Moore; Christopher Gonnella – Cravath Swaine & Moore; Duncan Hardell – Cravath Swaine & Moore; Eric Hilfers – Cravath Swaine & Moore; Saagar Kaul – Cravath Swaine & Moore; Anthony N. Magistrale – Cravath Swaine & Moore; Matthew Morreale – Cravath Swaine & Moore; Michael Pelle – Cravath Swaine & Moore; Jason Rooindej – Cravath Swaine & Moore; Jesse Weiss – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: Altra Industrial Motion Corp.;