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Cummins Announces Final Exchange Ratio of 12.0298 in Split-Off of Atmus Filtration Technologies Inc.

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Cummins Inc. (NYSE: CMI) announces the final exchange ratio for its split-off exchange offer with Atmus Filtration Technologies Inc. Shareholders can exchange their Cummins shares for Atmus shares at a ratio of 12.0298 shares of Atmus for each Cummins share. Cummins expects to accept around 5,574,051 shares if fully subscribed.
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The announcement of Cummins Inc.'s final exchange ratio for its split-off exchange offer is a significant event for both Cummins and its shareholders. The specificity of the exchange ratio at 12.0298 shares of Atmus Filtration Technologies for each share of Cummins indicates a well-structured plan to divest from Atmus. The anticipated acceptance of approximately 5,574,051 shares of Cummins stock for exchange, contingent on full subscription, highlights the scale of the transaction.

Investors should be aware of the proration clause, which could affect the final number of shares exchanged if the offer is oversubscribed. This is a common practice in such transactions to ensure equitable treatment of shareholders. The involvement of reputable financial institutions, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC, as dealer managers may instill confidence in the process and could potentially impact Cummins' stock performance in the short-term, as the market reacts to the final terms of the offer.

The strategic decision for a split-off exchange offer by Cummins reflects a move to streamline its business operations and focus on its core competencies. This transaction could signal a shift in Cummins' business strategy that might affect its market position. By divesting Atmus, Cummins could be aiming to unlock value for its shareholders and improve its financial metrics.

From a market perspective, the success of the exchange offer and the subsequent performance of Atmus as an independent entity will be closely watched. The performance of Atmus post-split-off could provide insights into the filtration technology market and Cummins' valuation of this business unit. The long-term impact on Cummins' stock will depend on how the capital freed from this transaction is utilized and whether it leads to improved profitability and growth prospects.

The timing and conditions of the exchange offer, set to expire in March 2024, suggest Cummins is making a calculated move within a specific economic context. The decision to engage in a split-off could be a response to macroeconomic conditions, such as interest rates and corporate tax implications, which could influence the timing and attractiveness of such offers.

Furthermore, the exchange offer may have broader economic implications, potentially affecting employment, investment in research and development and the competitive landscape within the industry. The reallocation of resources as a result of this corporate restructuring could lead to more efficient capital distribution within the company and the market at large, which in turn could influence Cummins' economic footprint and its contribution to industrial sector growth.

COLUMBUS, Ind.--(BUSINESS WIRE)-- Today, Cummins Inc. (NYSE: CMI) (“Cummins”) announced the final exchange ratio for its previously announced split-off exchange offer to Cummins shareholders to exchange their shares of common stock of Cummins for shares of common stock of Atmus Filtration Technologies Inc. (NYSE: ATMU) (“Atmus”) currently held by Cummins.

For each share of Cummins common stock that is validly tendered and not properly withdrawn by shareholders and that is accepted by Cummins pursuant to the exchange offer, Cummins will deliver 12.0298 shares of Atmus common stock to or at the direction of any such tendering shareholder.

Based on the final exchange ratio, Cummins currently expects to accept for exchange approximately 5,574,051 shares of Cummins common stock if the exchange offer is fully subscribed. Because the exchange offer will be subject to proration if the exchange offer is oversubscribed, the number of shares of Cummins common stock that Cummins accepts in the exchange offer may be less than the number of shares validly tendered by Cummins shareholders.

The exchange offer is currently scheduled to expire at 12:00 midnight, New York City time, at the end of the day on March 13, 2024, unless terminated or extended.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the dealer managers for the exchange offer.

About Cummins

Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. Headquartered in Columbus, Indiana, Cummins employs approximately 75,500 people committed to powering a more prosperous world. It operates a robust distribution and support network in more than 190 countries and territories. Cummins reported net sales of approximately $34.1 billion for the year ended December 31, 2023.

Forward-Looking Statements

This communication contains certain statements about Cummins and Atmus that are forward-looking statements. Forward-looking statements are based on current expectations and assumptions regarding Cummins’ and Atmus’ respective businesses, the economy and other future conditions. In addition, the forward-looking statements contained in this communication may include statements about the expected effects on Cummins and Atmus of the exchange offer, the anticipated timing and benefits of the exchange offer, Cummins’ and Atmus’ anticipated financial results, and all other statements in this communication that are not historical facts.

Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and are detailed more fully in Cummins’ and Atmus’ respective periodic reports filed from time to time with the U.S. Securities and Exchange Commission (the “SEC”), the Registration Statement referred to below, including the prospectus (the “Prospectus”) forming a part thereof, the Schedule TO and other exchange offer documents filed by Cummins or Atmus, as applicable, with the SEC. Such uncertainties, risks and changes in circumstances could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements included herein are made as of the date hereof, and neither Cummins nor Atmus undertakes any obligation to update publicly such statements to reflect subsequent events or circumstances, except to the extent required by applicable securities laws. Investors should not put undue reliance on forward-looking statements.

Additional Information and Where to Find It

This communication is for informational purposes only and is not an offer to sell or exchange, a solicitation of an offer to buy or exchange any securities and a recommendation as to whether investors should participate in the exchange offer. Atmus has filed with the SEC a registration statement on Form S-4 (the “Registration Statement”) that includes the Prospectus. The exchange offer will be made solely by the Prospectus. The Prospectus contains important information about the exchange offer, Cummins, Atmus and related matters, and Cummins will deliver the Prospectus to holders of Cummins common stock. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, WHEN THEY BECOME AVAILABLE AND BEFORE MAKING ANY INVESTMENT DECISION, BECAUSE THEY CONTAIN IMPORTANT INFORMATION. None of Cummins, Atmus or any of their respective directors or officers or the dealer managers appointed with respect to the exchange offer makes any recommendation as to whether you should participate in the exchange offer.

Cummins has filed with the SEC a Schedule TO, which contains important information about the exchange offer.

Holders of Cummins common stock may obtain copies of the Prospectus, the Registration Statement, the Schedule TO and other related documents, and any other information that Cummins and Atmus file electronically with the SEC free of charge at the SEC’s website at http://www.sec.gov. Holders of Cummins common stock will also be able to obtain a copy of the Prospectus by clicking on the appropriate link on www.okapivote.com/CumminsAtmusExchange.

Cummins has retained Okapi Partners LLC as the information agent for the exchange offer. To obtain copies of the exchange offer Prospectus and related documents, or for questions about the terms of the exchange offer or how to participate, you may contact the information agent at 1-877-279-2311 (in the U.S., including Puerto Rico, and Canada) or 1-917-484-4425 (all other areas).

Jon Mills – Director, External Communications

317-658-4540

jon.mills@cummins.com

Source: Cummins Inc.

FAQ

What is the final exchange ratio for Cummins' split-off exchange offer with Atmus Filtration Technologies Inc.?

The final exchange ratio is 12.0298 shares of Atmus for each share of Cummins common stock.

How many shares does Cummins expect to accept if the exchange offer is fully subscribed?

Cummins expects to accept approximately 5,574,051 shares of Cummins common stock.

Who are the dealer managers for the exchange offer?

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the dealer managers for the exchange offer.

When is the exchange offer scheduled to expire?

The exchange offer is currently scheduled to expire on March 13, 2024, at 12:00 midnight, New York City time.

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