Westport agrees to sell CNG Compressor Business to Snam for EUR12.5M
Westport Fuel Systems announced that it has entered into an agreement to sell its compressed natural gas compressor business based in Cherasco, Italy to Snam S.p.A. for a cash purchase price of EUR12.5M, subject to certain customary adjustments and closing conditions. The transaction is expected to close by the end of July. As a consequence of the divestiture, the results from the CNG compressor business will be reclassified to discontinued operations in future external reporting for the full year. Therefore, the company is revising its consolidated revenue guidance from continuing operations to a range of $235M-$255M for FY18. "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. 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. This divestiture is also aligned with our strategic review of our product portfolio. Not only does the sale strengthen our balance sheet, but it also enables us to concentrate on our key priorities to grow our core business, delivering innovative, ready-now products that address the market's need for alternative fuel solutions," stated Nancy Gougarty, CEO of Westport.