Landi Renzo and Clean Energy Combine Compressor Businesses, Setting Up a New Global Powerhouse
November 27 2017 - 6:00AM
Business Wire
New Company Well-Positioned to Take
Advantage of Move from Diesel to Natural Gas
Landi Renzo S.p.A. and Clean Energy Fuels Corp. (Nasdaq: CLNE)
announced today that the two companies are combining their
compressor manufacturing subsidiaries to form a new standalone
company that will immediately become one of the leading suppliers
of natural gas compressors and other related products across the
entire globe. Landi Renzo’s SAFE, with a strong presence in Europe
and Asia, and Clean Energy Compression, which is well established
in the North and South America markets, will combine manufacturing
and support operations and equip an international sales team with
an expanded line of quality compressors featuring the latest
technologies.
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the full release here:
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Upon closing, which is anticipated before the end of the year,
Landi Renzo will own 51% of the new company and take over
operational management, while Clean Energy will retain a 49%
ownership. Andrew J. Littlefair, President and CEO of Clean Energy,
will serve as the chairman of the board. The combined company will
be headquartered in San Giovanni Persiceto (BO), Italy, and retain
Clean Energy’s manufacturing operation in Chilliwack, British
Columbia, Canada.
“The world is rapidly waking up to the harmful impact that
diesel is having on air quality,” said Cristiano Musi, who is
currently Group CEO of Landi Renzo and will also be the CEO of the
new company. “Natural gas is an obvious alternative for vehicles
because it burns much cleaner, is plentiful around the world and
there is a growing engine portfolio to choose from. This newly
formed compressor company will be uniquely positioned to take
advantage of the trend towards natural gas with a global footprint
and a great product offering.”
“SAFE and Clean Energy Compression’s businesses when combined,
establish a completely complementary structure in geography,
expertise and highly competitive products,” said Littlefair.
“Consolidating operations and corporate functions is expected to
enable the new company to focus on manufacturing efficiencies with
the best technologies and reduce redundant overhead, resulting in
improved margins.”
The new company will be able to take advantage of its global
positioning, product offering and market penetration required to
meet the growing demand of transportation fleets that seek
solutions to replace diesel. Strict environmental policies are
being adopted around the world to address air quality problems
caused by polluting NOx emissions. Improved natural gas engine
technology and a more abundant supply of renewable natural gas
(RNG) allows some large vehicles to reduce their emissions by 90%
and cut climate-changing greenhouse gases by 70% versus diesel.
The combination of SAFE and Clean Energy Compression will allow
the new company to automatically achieve leading positions in
Europe and North American and lay the foundation to accelerate
growth in new geographies of the Middle East, Africa and Asia.
Landi Renzo is the global leader in the LPG and Methane
gas components and systems for motor vehicle sector. The Company is
based in Cavriago (Reggio Emilia) and has over 60 years’ experience
in the sector, and is renowned for the extent of it international
activities in over 50 countries, with export sales of about 80%.
Landi Renzo S.p.A. has been listed on the STAR segment of the MTA
Market of Borsa Italiana since June 2007.
Clean Energy Fuels Corp. is the leading provider of
natural gas fuel for transportation in North America. We build and
operate CNG and LNG vehicle fueling stations; manufacture CNG and
LNG equipment and technologies; and deliver more CNG and LNG
vehicle fuel than any other company in the U.S. Clean Energy also
sells Redeem RNG fuel and believes it is the cleanest
transportation fuel commercially available, reducing greenhouse gas
emissions by up to 70%. For more information,
visit www.CleanEnergyFuels.com.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that
involve risks, uncertainties and assumptions, such as statements
regarding, among other things: the Company’s agreement to combine
its natural gas fueling compressor business with SAFE, whether the
combined company is established as planned and whether the
synergies, capabilities, overhead reductions, margin improvements,
market addressability and strategic advantages expected from this
combination are achieved; the timing of the proposed combination;
and the benefits of natural gas (including RNG) as an alternative
vehicle fuel, including economic and environmental benefits.
Actual results and the timing of events could differ materially
from those expressed in or implied by these forward-looking
statements as a result of a variety of factors, including, among
others: satisfaction of the conditions required to close the
combination; supply, demand, use and prices of crude oil, gasoline,
diesel, natural gas and other alternative fuels; the willingness of
fleets and other consumers to adopt natural gas (including RNG) as
a vehicle fuel; the combined company’s ability to implement
business plans. The forward-looking statements made in this press
release speak only as of the date of this press release and Clean
Energy undertakes no obligation to update publicly such
forward-looking statements to reflect subsequent events or
circumstances, except as otherwise required by law. Additionally,
the reports and other documents Clean Energy files with the SEC
(available at www.sec.gov) contain additional information on
these and other risk factors that may cause actual results to
differ materially from the forward-looking statements contained in
this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20171127005273/en/
Contact person for analysts/investors:LANDI
RENZOPierpaolo MarzialiM&A and Investor
Relations Officerir@landi.itorContact for
media:Image BuildingCristina Fossati, Angela Fumis, Anna
Pirtali02 89011300landirenzo@imagebuilding.itorClean Energy
Media Contact:Jason Johnston –
Media+1-949-437-1411jason.johnston@cleanenergyfuels.comorClean
Energy Investor Contact:Tony Kritzer –
Investors+1-949-437-1403tkritzer@cleanenergyfuels.com
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