Westport Innovations Inc. and Fuel Systems Solutions, Inc. jointly announced they have entered into a merger agreement to create a premier alternative fuel vehicle and engine company.
Traditionally, Westport has focused the majority of its technological development and commercialization efforts in the heavy-duty and high horsepower arena, while Fuel Systems has significant experience and focus in the light- and medium-duty products for automotive and industrial applications.
The transaction will result in a combined equity value of $351 million based on the closing trading prices for the shares of both companies on Aug. 31, 2015, and combined annual revenues ranging from $380 to $405 million projected for 2015. Annual savings and merger synergies of $30 million are expected to be achieved by 2018.
The combined company will benefit from complementary product solutions, and a fortified global footprint, with efficient operations and a core focus in developing next generation technology. Their merger combines 17 brands in the automotive and industrial space and will allow customers and stakeholders to benefit from the consolidation of technologies, and the expansion of product portfolios, OEM relationships, and global distribution networks.
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