Westport Fuel Systems Announces Agreement to Sell CNG Compressor Business to Snam S.p.A. for 12.5 Million Euro
May 17 2018 - 1:00PM
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.
About Snam S.p.A.
Snam is Europe’s leading gas utility. Founded in
1941 as “Società Nazionale Metanodotti”, it has been building and
managing sustainable and technologically advanced infrastructure
guaranteeing energy security for over 75 years. Snam operates in
Italy and, through subsidiaries, Austria (TAG and GCA), France
(Teréga) and the United Kingdom (Interconnector UK). It is one of
the main shareholders of TAP (Trans Adriatic Pipeline) and is the
company most involved in projects for the creation of the Energy
Union. First in Europe by transport network size (over 32,500 km in
Italy, about 40,000 with international subsidiaries) and natural
gas storage capacity (16.7 billion cubic meters in Italy, about 20
billion with international subsidiaries), Snam manages the first
liquefied natural gas (LNG) plant built in Italy and is a
shareholder of the country’s main terminal. Snam’s business model
is based on sustainable growth, transparency, nurturing talent, and
development of local areas by dialoguing with communities. It
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.
www.snam.it
About Westport Fuel Systems
At Westport Fuel Systems, we are driving innovation to power a
cleaner tomorrow. We are inventors, engineers, manufacturers and
suppliers of advanced clean fuel systems and components that can
change the way the world moves. Our technology delivers
performance, fuel efficiency and environmental benefits to address
the challenges of global climate change and urban air quality.
Headquartered in Vancouver, Canada, we serve our customers in more
than 70 countries with leading global transportation brands. At
Westport Fuel Systems, we think ahead. For more information, visit
www.wfsinc.com.
Cautionary Note Regarding Forward Looking
Statements
This press release contains forward-looking statements,
including statements regarding the timing of the closing of the
referenced compressor business sale. These statements are neither
promises nor guarantees, but involve known and unknown risks and
uncertainties and are based on both the views of management and
assumptions that may cause our actual results, levels of activity,
performance or achievements to be materially different from any
future results, levels of activities, performance or achievements
expressed in or implied by these forward looking statements. These
risks and uncertainties include risks and assumptions related to
the timing for and Westport Fuel Systems ability to complete the
required closing conditions for the referenced transaction, as well
as other risk factors and assumptions that may affect our actual
results, performance or achievements or financial position
discussed in our most recent Annual Information Form and other
filings with securities regulators. Readers should not place undue
reliance on any such forward-looking statements, which speak only
as of the date they were made. We disclaim any obligation to
publicly update or revise such statements to reflect any change in
our expectations or in events, conditions or circumstances on which
any such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in these
forward looking statements except as required by National
Instrument 51-102. The contents of any website, RSS feed or twitter
account referenced in this press release are not incorporated by
reference herein.
Investor Inquiries: Caroline
SawamotoManager, Investor Relations & Communications Westport
Fuel SystemsT: +1
604-718-2046invest@wfsinc.com
Westport Fuel Systems (NASDAQ:WPRT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Westport Fuel Systems (NASDAQ:WPRT)
Historical Stock Chart
From Apr 2023 to Apr 2024