BRITISH COLUMBIA

Westport buys BAF Technologies and ServoTech subsidiary for $25 million in stock

06/28/2013 08:55 EDT | Updated 08/28/2013 05:12 EDT
VANCOUVER - Westport Innovations Inc. (TSX:WPT) has signed a deal to buy BAF Technologies Inc. and its subsidiary, ServoTech Engineering, Inc., from Clean Energy Fuels Corp. for $25 million in stock.

Westport said the deal secures its position as Ford's largest partner under the qualified vehicle modifier program.

The company also announced a $5-million joint marketing and sales program that will include purchase incentives for fleets and a commitment from Clean Energy to purchase Westport products.

Clean Energy Fuels manufactures compressed natural gas and liquefied natural gas equipment and has natural gas fuelling stations across North America.

Under the deal, Westport will pay Clean Energy Fuels $25 million in stock based on a share price of $30.62.

Westport shares closed at $34.77 on Thursday.

Westport develops engines that use fuels such as compressed natural gas, liquefied natural gas, hydrogen and renewable natural gas fuels such as landfill gas.