Fuel Systems Solutions agrees to acquire EvoTek and PCI
Fuel Systems Solutions, Inc will move forward acquiring EvoTek LLC, a top developer of alternative-fuel automotive systems within North America. EcoTek supplies CNG and LPG conversion systems throughout various fleet vehicle platforms in the U.S. The total amount for the transaction is $7 million, which is due to close in September of 2010, subject to closing conditions. EvoTek will then be integrated into the Fuel Systems U.S. automotive division.
Fuel Systems also purchased the alternative fuel vehicle business of Productive Concepts International LLC (PCI) for $11.1 million.
"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, chief executive officer of Fuel Systems Solutions. "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, chief financial officer and secretary of Fuel Systems Solutions, said, "EvoTek and PCI together equip our U.S. Automotive business with the complete package of capabilities necessary to be a leader in this market. EvoTek is a strategic transaction that immediately positions Fuel Systems to compete in the dedicated natural gas vehicle (NGV) OEM market emerging in the United States. PCI adds key technology and industry relationships to further our North American OEM and fleet market strategy, and its selection by General Motors to supply CNG fuel delivery and storage systems for the Chevrolet Express and GMC Savana vans is an exciting opportunity to leverage our combined platforms for these customers' evolving alternative fuel vehicle strategy. PCI also expands our vehicle modification and systems integration capabilities for a variety of alternative fuel applications, including hybrid, CNG, propane and dual-fuel diesel."
Mr. Beale concluded, "We continue to believe fleet vehicles offer attractive opportunities for our 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."