Westport Fuel Systems Inc. has entered into an agreement to sell its CNG compressor business based in Cherasco, Italy to Snam S.p.A., 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 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 compressor business given their leadership in the development of natural gas fueling infrastructure in Italy,” said Nancy Gougarty, CEO of Westport Fuel Systems. “This business will be in good hands as they will be able to grow the CNG fueling infrastructure further, which will ultimately benefit our core business. Not only does this 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.”
Snam signed the agreement through its subsidiary Snam4Mobility and the acquisition, which includes the Cubogas brand, will allow the company to internalize and consolidate entirely the value created along the chain, positioning itself as a leader in providing “turnkey” solutions for sustainable natural gas mobility.
The completion of the acquisition, which will be carried out by a newly established company 100% controlled by Snam4Mobility, is expected in July, after meeting certain conditions including trade union procedures. Snam will work to further develop the strengths of Cubogas such as brand value, customer orientation and level of service.