NEW YORK — Fuel Systems Solutions has agreed to purchase EvoTek LLC, an alternative fuel automotive systems developer in North America that offers dedicated CNG and LPG conversion systems across multiple U.S. fleet vehicle platforms.
The transaction is valued at $7 million, comprised of $4 million in cash to be paid at closing and $3 million of Fuel Systems’ stock paid into escrow at closing and released in three equal annual installments upon achievement of certain product development milestones.
The sale is expected to close this month, subject to customary closing conditions. After closing, EvoTek will be integrated into Fuel Systems’ U.S. automotive division. EvoTek’s customers include BAF Technologies, Inc., a subsidiary of Clean Energy Fuels Corp.
Fuel Systems also announced that it has completed the purchase of Productive Concepts International LLC’s (PCI) alternative fuel vehicle business for $11.1 million including $975,000 in assumed debt, as announced on Aug. 5.
"The combination of EvoTek and PCI with our existing U.S. automotive business is transformative for Fuel Systems in the U.S. marketplace," said Mariano Costamagna, Fuel Systems Solutions CEO. "The development of the U.S. alternative fuel vehicles market is now accelerating and these transactions allow us to build on our strong, unique leadership position in this market. We remain dedicated to meeting the demands of evolving OEM alternative fuel programs."
Matthew Beale, president, CFO and secretary of Fuel Systems Solutions, that the company sees fleet vehicles as attractive opportunities for the company’s gaseous fuel solutions in the U.S.
“We now have a full suite of automotive capabilities in this market, including a CARB-certified, dedicated systems product line and in-house OEM systems engineering platform, greatly enhancing our ability to leverage our strong existing relationships with fleet customers and other manufacturers as they roll out CNG and LPG versions of key fleet vehicles," Beale said.
Click here to learn more about Fuel Systems Solutions.
