Westport Fuel Systems Inc. said it has entered into an agreement to sell its compressed natural gas (CNG) compressor business based in Cherasco, Italy to Snam S.p.A., a European gas utility company. The deal is reportedly for a cash purchase price of €12.5 million, subject to certain customary adjustments and closing conditions. The transaction is expected to close by the end of July.
The divestiture is consistent Westport Fuel Systems said, with its strategy to streamline its business and product lines and focus on supplying alternative fuel vehicle components and systems to the transportation industry.
“We are proud to have Snam agreeing to purchase our CNG compressor business given their leadership in the development of natural gas fueling infrastructure in Italy,” stated Nancy Gougarty, chief executive officer of Westport Fuel Systems. “This business will be in good hands as they will be able to grow the CNG fueling infrastructure further, which will ultimately benefit our core business.
Founded in 1941 as Società Nazionale Metanodotti, Snam has been building and managing sustainable and technologically advanced infrastructure guaranteeing energy security for over 75 years. Snam operates in Italy and, through subsidiaries, Austria (TAG and GCA), France (Teréga) and the United Kingdom (Interconnector UK). It is one of the main shareholders of TAP (Trans Adriatic Pipeline) and is involved in projects for the creation of the Energy Union.
Snam’s transport network size (over 32,500 km in Italy, about 40,000 with international subsidiaries) and natural gas storage capacity (16.7 billion cubic meters in Italy, about 20 billion with international subsidiaries), is among the largest in Europe. It also manages a liquefied natural gas (LNG) plant built in Italy and is a shareholder of the country’s main terminal.