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