Westport Fuel Systems Inc. has entered into an agreement to sell its Cherasco, Italy-based compressed natural gas (CNG) compressor business to Snam S.p.A. for a cash purchase price of EUR 12.5M (USD 14.8M), subject to certain customary adjustments and closing conditions. Snam owns Europe’s largest, most accessible pipeline network (32,455 km), one of the largest storage infrastructures in the European Union (16.5 bcm capacity) and the first LNG terminal built in Italy.
The transaction is expected to close by the end of July. The divestiture is consistent with Westport Fuel Systems strategy to streamline its business and product lines and focus on supplying alternative fuel vehicle components and systems to the transportation industry.
“We are proud to have Snam agreeing to purchase our CNG compressor business given their leadership in the development of natural gas fuelling infrastructure in Italy,” stated Nancy Gougarty, Chief Executive Officer of Westport Fuel Systems. “This business will be in good hands as they will be able to grow the CNG fuelling infrastructure further, which will ultimately benefit our core business. This divestiture is also aligned with our strategic review of our product portfolio. Not only does the sale strengthen our balance sheet, but it also enables us to concentrate on our key priorities to grow our core business, delivering innovative, ready-now products that address the market’s need for alternative fuel solutions.”
As a consequence of the divestiture, the results from the CNG compressor business will be reclassified to discontinued operations in future external reporting for the full year. Therefore, the company is revising its consolidated revenue guidance from continuing operations to a range of $235 million to $255 million for the full year 2018.
Westport Fuel Systems are inventors, engineers, manufacturers and suppliers of advanced clean fuel systems and components that can change the way the world moves while addressing the challenges of global climate change and urban air quality. Headquartered in Vancouver, Canada, it serve its customers in more than 70 countries with leading global transportation brands.
In January, Snam S.p.A. issued a call for tenders for the renewal of its car fleet to natural gas.
Source: Westport Fuels Systems Inc.
Westport Fuel systems is a corporate member of NGV Global. Snam S.p.A. is a member of NGV Italy and associate member of NGV Global.