Landi Renzo is a leading global supplier of CNG and LPG powered components and systems. Only a month ago has bought AEB, a company devoted to the design and production of electronic devices for CNG and LPG conversion systems, founded in 1984.
Now, it goes on moving forward on the market by acquiring Baytech Corporation, which is an “Original Equipment Small Volume Manufacturer” and a leading developer of natural gas fuel injection systems, which are EPA and CARB certified.
Today, Baytech develops, manufactures and sells systems for Chevrolet, GMC, Isuzu and Workhorse Custom Chassis vehicles and engines. The systems meet stringent emission standards and On Board Diagnostics II.
It is worth mentioning that Baytech is the only company in the United States to own eleven CARB certifications and sixteen EPA certifications for natural gas and propane fuel injection systems for GM vehicles and heavy duty engines.
This acquisition allows Landi Renzo to accelerate its entry into the U.S. market, characterized by a convergence of purpose and consensus in favor of natural gas as a transportation fuel for its environmental and economic benefits.
“We see the U.S. as a high potential market – says Landi Renzo CEO, Claudio Carnevale- The desire to reduce dependence on oil by using less polluting energy sources is pushing the U.S. towards the adoption of cleaner alternative fuels. The recent discoveries of large domestic natural gas deposits, and the availability of technology to use it, with no doubt, encourage the creation of all necessary conditions to complete a suitable context for the development of the sector. It should be said that under the current laws – Carnevale continues – Landi Group developments in this market are, now more than ever, already possible, thanks to its established know-how. The acquisition of Baytech speeds up the development process of the sector. “
“This acquisition – says Andrea Landi, President of Landi Renzo USA Corporation – allows us to quickly capture market opportunities through certified platforms already in Baytech’s portfolio, allowing us to save the high costs associated with the actions and processes of obtaining certifications themselves. The Baytech know-how will also be very useful in developing and certifying gaseous fuel injection systems for platforms other than General Motors. Also – Landi continues – thanks to our experience we can widen the scope of Baytech’s activities, giving it the capacity to provide the final customer, now mainly consisting of fleets, a turnkey project.”
Upon signature of the contract has also been the closing of the transaction, under which Landi Renzo USA Corporation has paid to Baytech shareholders, compared to a price of equity value of $15 million, the amount of $ 12.3 million, with a commitment to pay the difference of $ 2.7 million upon renewals of a group of expiring certifications.
At December 31, 2009 Baytech had a cash position of $ 412,000. On the basis of practice for such operations, the price paid will be subject to an adjustment mechanism based on the change, still to be determined, in Baytech net equity at the closing date.