Westport Fuel Systems Inc. has completed the sale of its compressed natural gas (CNG) compressor business to Snam S.p.A. (Snam), a leading European gas utility company. This divestiture was initially announced by Westport Fuel Systems on May 17, 2018.
Sale of the compressor business resulted in total proceeds of EUR 12.3 million, net of a EUR 500,000 holdback to be released upon fulfillment of an independent audit process to be completed within 30 business days.
“The closing of this transaction marks another achievement in our portfolio rationalization, a strategic initiative we started two years ago following the merger with Fuel Systems Solutions to capture synergies, drive efficiencies, and strengthen our balance sheet,” said Nancy Gougarty, Chief Executive Officer of Westport Fuel Systems. “With a stronger balance sheet, a more streamlined business, and improving operational results, we believe we can build on our market-leading position in our core markets, which should drive long-term value for the company and our shareholders.”
Snam, Europe’s leading gas utility, fosters sustainable mobility, expands into energy efficiency, and invests in biomethane and innovative technologies to increase the use of renewable gas, a key resource of the green economy.
Canadian company Westport Fuel Systems invents, engineers, manufactures and supplies advanced clean fuel systems and components that can change the way the world moves. Its technology delivers performance, fuel efficiency and environmental benefits to address the challenges of global climate change and urban air quality. Headquartered in Vancouver, Canada, it serves customers in more than 70 countries with leading global transportation brands. For more information, visit www.wfsinc.com.
Source: Westport Fuel Systems – a corporate member of NGV Global