Westport Fuel Systems Announces Agreement to Sell CNG Compressor Business to Snam S.p.a. for 12.5 Million Euro

Source Press Release
Company Snam Rete Gas 
Tags Asset Deals, Deals, Refining & Marketing Activities
Date May 17, 2018

Westport Fuel Systems Inc. (“Westport Fuel Systems”) (TSX:WPRT) (Nasdaq:WPRT) today announced that it has entered into an agreement to sell its compressed natural gas (“CNG”) compressor business based in Cherasco, Italy to Snam S.p.A. (“Snam”), a leading European gas utility company, for a cash purchase price of 12.5 million Euro, subject to certain customary adjustments and closing conditions. 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.”

CoveView Advisors LLC acted as financial advisor and Latham & Watkins (Italy) acted as legal advisor for Westport Fuel Systems on the transaction.  

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.

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