Fuel Systems Solutions, Inc. has agreed to purchase Teleflex Incorporated’s Power Systems business, which includes industrial and transportation alternative fuel components and systems and auxiliary power systems, for $14.5 million in an all-cash transaction. The addition of complementary technology, according to Fuel Systems President, Matthew Beale, will enable platform leverage central to their growth strategy. The transaction is expected to close in the third quarter of 2009 and is subject to customary closing conditions.
“Fuel Systems has pursued its strategy of acquiring businesses and technology that enhances or extends its capabilities,” said Mariano Costamagna, chief executive officer of Fuel Systems Solutions. “Teleflex’s alternative fuel components and systems business unit complements our existing global transportation and industrial businesses. Its technology and engineering capabilities expand our existing platform. The auxiliary power systems business, anti-idling auxiliary power units that are used to generate power for operators of parked class-8 trucks and diesel locomotives, will broaden our target markets.”
Matthew Beale, president and chief financial officer of Fuel Systems Solutions, said, “This transaction is a further step forward in the execution of our growth strategy. Central to that strategy is the addition of complementary technology and product capabilities that allow us to further leverage our platform. We believe the transaction offers important synergy potential and expect it to be mildly accretive to 2009 earnings with greater contribution beginning in 2010.”
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