NEW YORK, April 6, 2011 (GLOBE NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS), through its wholly owned subsidiary IMPCO Technologies, Inc. ("IMPCO"), has agreed to purchase NaturalDrive Partners LLC ("NaturalDrive"), a premier 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 $6.0 million, comprised of $4.5 million in cash and $1.5 million of Fuel Systems' stock to be paid at closing. The transaction also includes provisions for earn-out payments totaling $6.75 million in the form of Fuel Systems stock, which would be payable during the three years following closing based upon achievement of business volume milestones. The transaction is expected to close in May 2011 and is subject to customary closing conditions. After closing, NaturalDrive will be integrated into IMPCO's U.S. automotive division.
"We are very excited to welcome NaturalDrive to the Fuel Systems and IMPCO teams," said Matthew Beale, Co-President of Fuel Systems and Head of IMPCO Operations. "We have partnered with the company over the last several months in developing OEM and fleet opportunities in North America and they have been an important part of the successful launch of our milestone GM van program. In addition, the transaction brings marketing and engineering depth to our North American team that will enhance our ability to develop leading edge solutions for our OEM and fleet customers."
About Fuel Systems Solutions
Fuel Systems Solutions (Nasdaq:FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at .
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, expressed or implied statements concerning the Company's ability to successfully utilize the acquisition to penetrate new and developing markets, leverage existing business, and contribute positively to revenues and earnings. Such statements only state our beliefs and opinions. The Company's actual results may differ materially. Factors that may cause the Company's results to differ include, but are not limited to, risks that closing conditions will not be met, that we cannot integrate the acquisitions into our business promptly and efficiently, that expected sales do not materialize, that revenues from the acquired businesses decline and that changes in emissions regulations may not significantly increase demand for the Company's products. Readers also should consider the risk factors set forth in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K, for the year ended December 31, 2010 and the Company's other periodic reports filed with the Securities and Exchange Commission. The Company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.
Matthew Beale, Co-President
Fuel Systems Solutions, Inc.
Investor Relations Contacts:
Lippert / Heilshorn & Associates
Carolyn M. Capaccio