Vancouver-based company Westport Fuel Systems Inc. has agreed to sell its compressed natural gas (CNG) compressor business based in Cherasco to Itallian gas transmission operator Snam.
The purchase price is 12.5 euros and the deal is expected to close by the end of July this year. 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.
Snam stated that the deal includes the Cubogas brand, an international leader in the compressed natural gas (CNG) supply systems, and would help it position itself as a leader in providing turnkey solutions for sustainable natural gas mobility.
“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,” said Nancy Gougarty, CEO 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.”
The completion of the acquisition, which will be carried out by a newly established company 100% controlled by Snam4Mobility, is expected in July this year, 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.
Source: Westport Fuel Systems and Snam