Business
Westport Announces Agreement to Divest the Light-Duty Segment for $73.1 Million
VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. ( ...
About this update from Westport Fuel Systems, Inc.
[{"type":"text","content":"Westport Announces Agreement to Divest the Light-Duty Segment for $73.1 MillionThe Proposed Transaction Sharpens the Company’s Focus on Providing Solutions for Hard-to-Decarbonize Mobility and Industrial Applications, Strengthens its Balance Sheet, and Provides Capital to Re-Invest in Near-Term Growth\n\n\n\n VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport\" or the \"Company\") (TSX:WPRT / Nasdaq:WPRT), has entered into a binding agreement (the “\n \n Agreement\n \n ”) to sell its interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. (“\n \n Heliaca Investments\n \n ”), a Netherlands based investment firm supported by Ramphastos Investments Management B.V. a prominent Dutch venture capital and private equity firm (the “\n \n Transaction\n \n ”). The Transaction provides for a base purchase price of $73.1 million (€67.7 million), subject to certain adjustments, and potential earnouts of up to an estimated $6.5 million (€6.0 million) if certain conditions are achieved, in accordance with the terms of the Agreement.\n \n\n Moving forward, Westport intends to concentrate fully on providing affordable solutions for hard-to-decarbonize mobility and industrial applications, centered around the unique opportunities created by the HPDI technology and our Cespira joint venture. The Transaction also strengthens Westport’s balance sheet and enables Westport to consider strategic acquisition opportunities consistent with the above strategic focus and extend its runway to fund near-term growth.\n \n\n “This Transaction marks a significant milestone in our evolution as an alternative fuel systems enterprise. By returning to our roots and focusing on our core strengths, providing solutions in hard-to-decarbonize mobility and industrial applications, we are positioning Westport for sustainable growth and enhanced operational efficiency. The Light-Duty segment has been an important part of our history, and we are confident that Heliaca Investments is the right partner to continue its development. This Transaction al...