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– Westport announces the signing of an investment agreement to establish a previously announced joint venture with Volvo Group
VANCOUVER, BC, March 11, 2024 /PRNewswire/ — Westport Fuel Systems Inc. (TSX: WPRT) (NASDAQ: WPRT) (“Westport” or “the Company”), a leading provider of advanced fueling components and systems alternative fuel for the global transportation industry, is pleased to announce the signing of an investment agreement to establish the previously announced joint venture with Volvo Group to accelerate the commercialization and global adoption of Westport’s HPDI™ fuel system technology for long-haul and off-road applications (“the JV”). Closing of the joint venture is subject to certain closing conditions, including regulatory and governmental approvals. The joint venture is expected to become operational following formal closing which is currently expected to occur in the second quarter of 2024.
“We are delighted to execute this agreement and build on our success with Volvo Group and our HPDI™ technology. We are motivated to continue innovating and investing in strong business relationships with leading organizations that share our goals, of which Volvo Group is certainly one,” said Dan Sceli, CEO of Westport Fuel Systems Inc. “Driven by our shared vision of a cleaner tomorrow, we look forward to continuing to collaborate and deliver real solutions to decarbonize the long-haul and off-road transportation sectors,” added Sceli.
As previously announced, Westport will contribute certain HPDI™ assets and opportunities, including related fixed assets, intellectual property and businesses, to the joint venture. Volvo Group will acquire a 45% interest in the joint venture for a sum of approximately $28 million, payable at closing, plus up to an additional $45 million as earn-out depending on the subsequent performance of the joint venture.
About Westport Fuel Systems
At Westport, we drive innovation to drive a cleaner tomorrow. We are a leading provider of advanced components and delivery systems for clean, low-carbon fuels, such as natural gas, renewable natural gas, propane and hydrogen, to the global transportation industry. Our technology delivers the performance and fuel efficiency transportation applications require and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, we serve our customers in more than 70 countries with leading global transportation brands. At Westport we think about the future. For more information, visit www.wfsinc.com.
About HPDI
HPDI is a cost-effective way to reduce CO2 in long-haul trucking and other off-road and heavy-duty applications. Westport’s HPDI fuel system is a complete system that offers OEMs the flexibility to easily differentiate their biogas, natural gas, hydrogen and other fuel product lines, while maintaining maximum similarity to their conventional diesel-powered products. . Using HPDI, greenhouse gas-emitting fuels, such as diesel, can be replaced with carbon-neutral or zero-carbon fuels, such as biogas or hydrogen, while maintaining the durability, affordability, efficiency and performance characteristics have associated with diesel. For additional information about HPDI, visit https://wfsinc.com/technology/hpdi.
Forward-looking statements:
This press release contains forward-looking statements, including statements regarding the closure and timing of the joint venture and the expected amount to be paid by Volvo in connection with the acquisition of a 45% interest in the joint venture. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both management’s views and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different. of any future results, levels of activities, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and assumptions include those related to the completion and satisfaction of all conditions to closing set forth in the investment agreement, government policies, regulation and approval, achievement of the performance criteria required for earnings described above, adjustments of the purchase price contained in the investment agreement, the demand for HPDI systems, as well as other risk factors and assumptions that may affect our actual results, performance or achievements, as discussed in our most recent Annual Information Form and other filings before securities regulators. Readers should not place undue reliance on such forward-looking statements, which speak only as of the date on which they are made. We disclaim any obligation to publicly update or revise any such statements to reflect any changes in our expectations or in events, conditions or circumstances on which such statements may be based, or which may affect the likelihood that actual results will differ from those set forth in these forward-looking statements, except as required by National Instrument 51-102. The contents of any website referenced in this press release are not incorporated herein by reference.
CONTACT: Media Relations: E: media@wfsinc.com; Investor Relations: T: 1 604-718-2046; E: invest@wfsinc.com
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