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Cummins to Sell Light Duty Filtration Business

Cummins Inc. last week entered into an agreement to sell its light duty filtration operations to Industrial Opportunity Partners, a private equity investment firm based in Evanston, Ill. The sale affects Cummins’ Kuss Filtration business in Findlay, Ohio, and Bloomer, Wis., and Kuss operations in Sao Paulo, Brazil, and Shanghai, China.

Terms of the deal were not disclosed. These operations are part of Cummins’ Filtration business, which specializes in providing a range of filtration products for diesel engines. The affected facilities produce light-duty filtration products for smaller engines used in gasoline applications, including in-tank fuel filters.

The sale will allow Cummins Filtration to place greater emphasis and resources on manufacturing products that are a critical part of Cummins’ growth strategy. Ever-tightening global emission standards provide Cummins with significant growth opportunities in the development and deployment of filtration products.

“Selling this part of our light-duty filtration operations to a strong buyer like Industrial Opportunity Partners provides Kuss and the business in Bloomer with the opportunity to grow while allowing us to concentrate on markets that are core to Cummins long-range growth plans,” said Joseph Saoud, president – Cummins Filtration.

“This is a very exciting opportunity for Light Duty Filtration business to be able to work with IOP, who will be dedicated to invest and grow the business,” said Hasnain Merchant, a current Cummins executive and CEO of the new company. “IOP will work with the current management team to help drive operational improvements, implement lean manufacturing initiatives, accelerate cost structure improvements and pursue growth opportunities.”

Merchant, the current general manager of Light Duty Filtration, said that the new business will revive the name Kuss Filtration, with its headquarters in Findlay, Ohio. During the transition period, Cummins will continue operating the business, providing products and support.

Cummins Inc., Columbus, Ind., manufactures, distributes and services engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

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