Clean Energy Signs Agreement to Acquire Northstar, Advanced LNG Technology Leader
December 08 2010 - 6:00AM
Business Wire
Clean Energy Fuels Corp. (Nasdaq: CLNE) has entered into a
Securities Purchase Agreement to acquire Wyoming Northstar
Incorporated and affiliates (“Northstar”) for an aggregate purchase
price of approximately $10.9 million in cash. Approximately $7.4
million will be paid at closing with the balance paid in equal
installments on each yearly anniversary date beginning in 2011 and
ending in 2015. Clean Energy will also pay retention bonuses not to
exceed $4.0 million in the aggregate over the four-year period
following closing.
Northstar is the recognized leader in LNG/LCNG (liquefied to
compressed natural gas) fueling system technologies, including the
manufacture of one of only two weights-and-measures certified LNG
dispensers. It has provided LNG station design, construction,
operations and maintenance for major clients, and has worked
closely with Clean Energy for several years.
“Having Northstar, the premier LNG station provider, in our
group will greatly enhance our ability to build out the growing
natural gas fueling infrastructure in the United States,” said
Andrew J. Littlefair, Clean Energy’s President and CEO. “Our plan
envisions a fueling infrastructure serving major goods movement and
trucking corridors nationwide.”
Clean Energy recently announced an agreement with Pilot Flying J
Travel Centers to build, own and operate public access, LNG fueling
facilities at agreed-upon Pilot Flying J truck travel centers
nationwide. Pilot Flying J operates over 550 truck travel centers
in 43 states and six Canadian provinces.
Littlefair added, “On the international front, growing interest
in LNG fueling in markets such as China, where we have a strong
developing presence through our subsidiary, IMW Industries, may
provide infrastructure opportunity as well.”
About Clean Energy Fuels
Clean Energy (Nasdaq: CLNE) is the largest provider of natural
gas fuel for transportation in North America and a global leader in
the expanding natural gas vehicle market. It has operations in CNG
and LNG vehicle fueling, construction and operation of CNG and LNG
fueling stations, biomethane production, vehicle conversion and
compressor technology.
Clean Energy fuels over 19,900 vehicles at 211 strategic
locations across the United States and Canada with a broad customer
base in the refuse, transit, trucking, shuttle, taxi, airport and
municipal fleet markets. It owns (70%) and operates a landfill gas
facility in Dallas, Texas, that produces renewable methane gas, or
biomethane, for delivery in the nation’s gas pipeline network. It
owns and operates LNG production plants in Willis, Texas and Boron,
Calif. with combined capacity of 260,000 LNG gallons per day and
that are designed to expand to 340,000 LNG gallons per day as
demand increases. BAF Technologies, Inc., a wholly owned
subsidiary, is a leading provider of natural gas vehicle systems
and conversions for taxis, limousines, vans, pick-up trucks and
shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary
based in Canada, is a leading supplier of compressed natural gas
equipment for vehicle fueling and industrial applications with more
than 1,000 installations in 24 countries.
www.cleanenergyfuels.com
Forward Looking Statements — This news 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,
including statements about the growth of the natural gas fueling
infrastructure and future payments to be made to Northstar or
Northstar employees pursuant to the terms of the acquisition.
Actual results and the timing of events could differ materially
from those anticipated in these forward-looking statements as a
result of limited demand for natural gas vehicle fuel, lack of
growth in the natural gas vehicle market and lack of availability
of natural gas vehicles. The forward-looking statements made herein
speak only as of the date of this press release and the company
undertakes no obligation to publicly update such forward-looking
statements to reflect subsequent events or circumstances.
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