Westport To Divest Light-Duty Segment For $73.1 Mln Base Price

(RTTNews) - Westport Fuel Systems Inc. (WPRT, WPRT.TO) Monday announced that it has entered into a binding agreement to sell its interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, for a base purchase price of $73.1 million.

Westport Fuel Systems Italia includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses. The deal is with a wholly-owned investment vehicle of Heliaca Investments Coperatief U.A., a Dutch investment firm supported by venture capital and private equity firm Ramphastos Investments Management B.V.

The transaction provides for a base purchase price of $73.1 million, subject to certain adjustments, and potential earnouts of up to an estimated $6.5 million if certain conditions are achieved, in accordance with the deal terms.

Under the terms of the agreement, Heliaca Investments through its subsidiary will acquire Westport's Light-Duty segment, including its related assets and customer contracts. The deal is subject to shareholder approval and other customary closing conditions and is expected to close in late second quarter of 2025.

The proceeds from the proposed Transaction are expected to enable Westport to significantly improve its financial stability, while also supporting key growth initiatives focused on providing solutions for hard-to-decarbonize mobility and industrial applications.

Following the sale, 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 its Cespira joint venture.

Following closing, Westport intends to align its cost structure to be more reflective of a smaller, more efficient organization, while also seeking further opportunities for efficiency gains.