Global Tube Completes Acquisition of Exhaust Business from Cummins

Wind Point Partners announced today that Global Tube, one of its portfolio companies, has completed the acquisition of the exhaust business of Cummins Inc. (NYSE: CMI).  An initial agreement on the transaction was announced in late January.  The combined business will operate under the name Nelson Global Products, Inc. and have headquarters in Stoughton, Wisconsin.

Global Tube is a leading manufacturer of tubes used in emissions, coolant, heating, air intake and exhaust handling applications for medium and heavy duty trucks and off-road vehicles, with operations in Illinois, Indiana, Tennessee and Changzhou, China.  Wind Point formed Global Tube in August 2010 in partnership with CEO Tom Gosnell, who has 30 years of experience in the commercial vehicle industry, most recently as President of ArvinMeritor’s $4 billion Commercial Vehicle Systems Group.

The Cummins exhaust business, known as Nelson Products, manufactures mufflers, silencers, bent tubes and thermal management products used in the off-road and medium and heavy duty commercial vehicle markets.  It has operations in Stoughton, Arcadia, Black River Falls and Viroqua, Wisconsin, in addition to Scoresby, Australia and Daman, India. 

The acquisition triples the size of Global Tube and creates a clear market leader in the tube forming industry.  The acquisition also adds new product capabilities, creating a one-stop supplier for global customers. 

Michael Nelson, a managing director at Wind Point, commented “We’d like to thank the Nelson Products and Global Tube teams for the hard work to get this transaction closed.  The heavy duty truck and off-road vehicle markets are experiencing a strong upturn in demand, and the addition of Nelson Products helps position the business to capitalize on growing markets.”

Tom Gosnell said “We had a great experience working with the Nelson Products team during diligence.  We think we’ve put together a great value proposition for our customers and are excited about the opportunities ahead.”

GE Antares Capital led the debt financing for the transaction. Reed Smith LLP acted as the exclusive legal advisor to Wind Point Partners.  Taft Stettinius & Hollister LLP acted as the exclusive legal advisor to Cummins Inc.