Westport acquires BAF, ServoTech for $25M; solidifies its OEM markets
The deal secures Westport's position as Ford's largest natural gas partner under the Qualified Vehicle Modifier (QVM) program
Clean Energy Fuels Corp
mergers and acquisitions
Qualified Vehicle Modifier program
Westport Innovations Inc
wing power system
VANCOUVER—natural gas engine technology firm Westport Innovations Inc. has acquired BAF Technologies, Inc. (BAF) and its subsidiary, ServoTech Engineering, Inc. (ServoTech).
Both were subsidiaries of California-based natural gas fueling station company Clean Energy Fuels Corp.
Westport inked the deal for $25 million in Westport stock and also announced a $5-million joint marketing and sales program with Clean Energy Fuels Corp.
This secures Westport’s position as Ford’s largest natural gas partner under the Qualified Vehicle Modifier (QVM) program, with more than 10 products and approximately 150 Ford authorized dealerships. The transaction allows both Westport and Clean Energy to focus on the significant growth opportunities as natural gas emerges as a global fuel for transportation.
“With natural gas increasingly seen as a major transportation fuel around the world, we believe the combination of these new teams’ market experience and Westport’s technologies, scalable manufacturing processes and quality control systems will help create the type of products needed to deliver an OEM-quality vehicle experience to our customers,” said Ian Scott, executive vice-president of Westport.
BAF supports clients with vehicle conversions through the Ford QVM program and aftermarket conversion products, alternative fuel systems, application engineering, service and warranty support.
ServoTech offers a total engineering solution from initial concept to prototype hardware and final prove-out, including design and development of electronic products, software development, automotive exhaust simulation and testing, spark-ignition gasoline and diesel emissions technology.
Currently, Westport exclusively installs the natural gas Westport WiNG Power System on the Ford F-250 through F-550 series at its assembly center in Louisville, KY. This acquisition increases Westport’s product range with the Ford line to include transit, cargo shuttle and taxi vehicles and dedicated natural gas vehicles for markets such as California. B
BAF and ServoTech posted combined annual revenue of $20.9 million in the fiscal year ending in April 2013.
BAF acquired Michigan-based Servotech in June, 2012