USA, Santa Ana
Fuel Systems Solutions, Inc. Italian operating subsidiary, MTM S.r.L., has signed an agreement to acquire Argentine based parent company of the Tomasetto Achille brand, Distribuidora Shopping S.A. (DS), a privately held manufacturer of components and systems for the compressed natural gas (CNG) vehicle market. The transaction, which is expected to close in January 2009, is subject to customary closing conditions. The transaction value of $22 million is subject to adjustment for any closing indebtedness and the selling shareholders will receive $10.0 million of Fuel Systems common stock as part of the purchase consideration.
Based in Buenos Aires, DS was founded in 1992 and will continue to sell its products under the Tomasetto Achille brand. For its fiscal year ending April 30, 2008, DS achieved consolidated revenues of $33 million with export sales accounting for over 75% of consolidated revenue.
“This acquisition furthers our strategic plan in many ways,” said Matthew Beale, president of Fuel Systems Solutions. “DS is an outstanding fit with our transportation business. The transaction reinforces our natural gas vehicle product line and expands our global manufacturing and distribution footprint. With this acquisition, we believe that our combined companies will offer a comprehensive product range in the market for alternative fuel systems. In addition, DS’s similar business model and entrepreneurial culture will facilitate integration and the activation of important operating efficiencies across our international production platform. We are also fortunate to welcome a top quality management team led by DS’s founder, Carlo Evi. Despite the current challenging economic environment, we continue to take the steps necessary to position our business to capture the clear medium term growth opportunity in our markets.”
DS operates in a 14,000 square meter production facility with over 250 employees in Argentina.
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