Fuel Systems Solutions Inc. stockholders endorsed the company’s proposed merger with Westport Innovations Inc., a deal proposed last fall. Fuel Systems directors had previously endorsed the merger, and other revised terms of the combination that would deliver 2.47 Westport common shares in exchange for each share of Fuel Systems stock.
The exchange rate is somewhat higher than the terms initially announced. Fuel Systems said that it has reaffirmed its support in favor of the merger with Westport.
Merger proponents now expect to finalize the deal on June 1.
Vancouver-based Westport Innovations Inc. develops and manufactures natural-gas engines for commercial vehicles. Fuel Systems i a New York company that designs and manufactures components and systems for controlling the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in automotive internal combustion engines.
Last fall, the two companies said the combination would give Westport access to the automotive and light vehicle sectors, where it intends to expand its natural gas combustion technologies.
Recently, Westport advised its shareholders that the merger’s advantages are both strategic and financial, including: increased organizational scale for effective growth in the alternative fuel sector; a stronger balance sheet and better liquidity; global reach; improved R&D and product development resources; and extensive relationships with auto, truck, and industrial OEMs.
The merger proposal calls for the new Westport Fuel Systems enterprise would be organized with a business unit known as Fuel Systems Automotive and Industrial Group, to accommodate the acquired company’s activities.