Photo of bi-fuel CNG Ford F-150 courtesy of Westport.

Photo of bi-fuel CNG Ford F-150 courtesy of Westport.

Westport Innovations is acquiring Fuel Systems Solutions in an all-stock deal valued at about $7.54 per share that will create "a premier alternative fuel vehicle and engine company," according to Westport.

The acquisition will create combined annual revenues of $380 million to $405 million for 2015, and the companies anticipate improved profitability even in volatile market conditions. Untapped savings and synergies should reach more than $30 million a year starting in 2016 through 2018. As part of the acquisition, Westport will acquire IMPCO Automotive.

Westport, a vehicle modifier, produces alternative fueling systems for fleet trucks and vans through strategic relationship with engine producers, truck producers, and more than 20 global vehicle manufacturers. Westport sells natural gas and propane engines, fuel systems, and components in more than 70 countries.

Fuel Systems Solutions manufactures alternative-fuel components and systems that control the presure and flow of gaseous alternative fuels such as natural gas and propane used in internal combustion engines. The company also provides engineering and systems integration services.

The acquisition should help Westport deliver cost savings to fleets, a company executive told

"We believe there are many cost reduction opportunities, such as vertical integration of product and leveraged buying power through volume purchases," said Nancy Gougarty, president and chief operating officer. "Ultimately, fleets will have a more cost competitive product that will help accelerate adoption of alternative fuels to achieve their sustainability goals."