Fuel Systems Solutions acquired by Westport
The deal is valued at $7,54 per share and is expected to create combined annual revenues of 380-405 million dollars in 2015, with savings and synergies reaching more than 30 million dollars a year starting in 2016. Fuel Systems Solutions and Westport Innovations look forward to improved profitability even in volatile market conditions. Also, the acquiring entity believes the deal will help bring cost savings to fleets.
We believe there are many cost reduction opportunities, such as vertical integration of product and leveraged buying power through volume purchases. Ultimately, fleets will have a more cost competitive product that will help accelerate adoption of alternative fuels to achieve their sustainability goals.
Nancy Gougarty, president and chief operating officer, Westport Innovations
Westport is a vehicle modifier, but also (or actually primarily) manufactures alternative fuel systems for truck and van fleets through partnerships with engine and truck manufacturers, among others. Westport markets natural gas (CNG and LNG) and autogas (LPG) engines, fuel systems, and components in more than 70 countries all over the world.
Fuel Systems Solutions on the other hand, the acquired company, produces alternative gaseous fuel components and complete systems controlling presure and flow of natural gas (methane) and LPG used as fuels in internal combustion engines. The company also delivers engineering and system integration services.
- LPG and CNG cars
- Hybrids and EV's
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