Fuel Systems Solutions to Acquire Certain Assets of CNG Refueling Products Manufacturer
SANTA ANA, CA --- Fuel Systems Solutions Inc. said it has agreed to acquire certain assets and technology for compressed natural gas (CNG) refueling products manufactured by FuelMaker Corp., including the home refueling appliance marketed under the Phill brand.
The transaction is valued at $7 million and is expected to close in the second quarter of 2009.
Fuel Systems Solutions is a leading designer, manufacturer and supplier of alternative-fuel components and systems for use in transportation and industrial applications. The company's components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines.
"We believe FuelMaker's unique technology, patents and certifications fit well with our turn-key refueling equipment solutions," said Mariano Costamagna, CEO of Fuel Systems Solutions. "The FuelMaker product line addresses both the consumer and commercial markets, which complements our existing refueling solutions for large fleets and gas stations."
"We believe we have significant opportunity to deploy this technology in existing and developing markets, such as the United States, where the natural gas refueling infrastructure is limited," added Matthew Beale, president of Fuel Systems Solutions. "We intend to leverage our global distribution network and original equipment manufacturer (OEM) relationships to further penetrate more established natural gas vehicle markets."
MTM S.r.L., the Italian operating subsidiary of Fuel Systems Solutions Inc., has agreed to two separate but related purchase agreements to make the transaction possible.
As part of the purchase agreements, Fuel Systems Solutions will fulfill certain FuelMaker service obligations and assume certain outstanding purchase orders. In an additional agreement with American Honda, the company has made provisions to license technology back to American Honda under certain circumstances to support its natural gas vehicle activities.
The closing of the related transactions hinges on certain conditions typical for this type of transaction.