Benzinga | Jun 29, 2021 04:59PM EDT

Cummins To Acquire 50% Stake In Momentum Fuel Technologies From Rush Enterprises For Undisclosed Sum

* Cummins Inc (NYSE:CMI) has agreed to acquire 50% equity interest in Momentum Fuel Technologies from Rush Enterprises Inc (NASDAQ:RUSHA).

* The terms of the deal were not disclosed.

* The transaction is expected to close later this year.

* The joint venture between Rush Enterprises and Cummins will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America.

* The joint venture will offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors who will serve both the engine and the fuel delivery system.

* "This partnership will improve customers service for both CNG and RNG through an improved support network," said Srikanth Padmanabhan, President of the Engine Business at Cummins.

* Cummins cash and equivalents amounted to $2.96 billion as of March 31, 2021.

* Price action: CMI shares are trading lower by 0.68% at $239.84 in the after-hours session on the last check Tuesday.