Capturing a Complete Portfolio of Alternative Fuel Systems, Expected Accretive Sales and Operations Synergies in 2015 and Beyond
Westport Innovations Inc., engineering advanced natural gas engines and vehicles, has acquired Netherlands based Prins Autogassystemen Holding B.V. (Prins) for Euro 12.2 million (USD 15.1 million) through a combination of Euro 6.6 million (USD 8.2 million) in assumed liabilities and Euro 5.6 million (USD 6.9 million) in cash.
Founded in 1986, Prins is a leading developer of high quality alternative fuel systems powered by compressed natural gas (CNG), liquefied natural gas (LNG) and liquefied petroleum gas (LPG or propane) for light-, medium-, and heavy-duty applications. Prins operations in Europe will be combined under the Westport Applied Technologies business unit.
“Prins’ globally respected product line, their strong track record in continuous innovation and new product introductions combined with its Original Equipment Manufacturer (OEM) relationships complement our products and OEM coverage to provide us with a great position as the go-to partner for alternative fuels solutions,” said Mehran Rahbar, Executive Vice President, On-Road Systems & Applied Technologies of Westport. “Westport has a great deal of experience with natural gas direct injection and believes that the combination of Prins’ and Westport’s team and technologies will further strengthen Westport’s dominant technology portfolio.”
“Westport is the leader in natural gas technologies and well-respected by engine and vehicle OEMs in the industry,” said Bart van Aerle, CEO of Prins. “Together, we can create the best-in-class alternative fuel systems across multiple fuel platforms and deliver on superior technology and performance characteristics.”
Prins has a comprehensive product offering including a full suite of alternative fuel systems for bi-fuel, mono-fuel, and dual-fuel applications using CNG, LNG and LPG, and a well-developed dual-fuel system – an add-on system for diesel engines with over 100 calibrations for CNG, LNG and LPG to optimize the diesel replacement rate, and proprietary fuel control software.
Prins also brings to Westport a global distribution network; it sells to end customers in over 50 countries through OEMs, country importers, and distributors
Additionally, Prins holds a unique position with a joint venture in Nigeria with a large industrial customer, operating one of the largest truck fleets in Africa – moving to natural gas trucks built by one of China’s largest truck manufacturers with Prins’ dual fuel systems.
Synergies Expected with Acquisition
- Products – Prins’ alternative fuel systems will expand Westport’s product portfolio to include direct injection technology for LPG and CNG systems, and a well developed portfolio of diesel dual fuel aftermarket systems
- Sales – Prins’ relationships with global OEMs complement Westport’s existing strength in Europe, Asia, and North America and will allow for increased cross-channel sales
- Geographies – Prins’ established footprint in large emerging markets for alternative fuels including Turkey and Africa opens access to new markets for Westport’s products
- Operations – Larger scale allows Westport and Prins to capture cost efficiencies
Westport does not expect material influence on 2014 revenue or earnings as a result of this transaction due to the timing of closing. Westport expects strong synergies and accretive earnings performance in 2015.
Westport Innovations is a sponsor member of NGV Global.