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Canadian natgas engine maker Westport to buy Fuel Systems

Published 2015-09-01, 11:03 a/m
© Reuters. Canadian natgas engine maker Westport to buy Fuel Systems
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Sept 1 (Reuters) - Canada's Westport Innovations Inc
WPT.TO , which develops motor vehicle engines that run on
natural gas, agreed to buy U.S. peer Fuel Systems Solutions Inc
FSYS.O in an all-stock deal to diversify from engines for
trucks and buses.
The deal comes at a time when the two companies try to cope
with narrowing spread between natural gas fuels and diesel, due
to a steep fall in crude prices, discouraging customers from
converting to vehicles run on natural gas.
Fuel Systems shareholders will receive 2.129 Westport shares
for each share held, representing a 10 percent premium to
Monday's closing on the Nasdaq. The transaction works out to
$7.54 per Fuel Systems share.
The merger would create a company with annual revenue of
$380-$405 million in 2015, the companies said on Tuesday.
ID:nPnwr5CG
Westport focuses on engines for heavy-duty vehicles
manufactured by companies including Volvo, Volkswagen (XETRA:VOWG) and Fiat
Chrysler Automobiles. Fuel Systems is geared toward light- and
medium-duty products for customers including General Motors Co (NYSE:GM)
GM.N , Ford Motor (NYSE:F) Co F.N and Mitsubishi Group.

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