Westport Fuel Systems Inc. (Westport) announces initial post-merger actions targeted at consolidating operations and driving efficiencies while maintaining ability to deliver original equipment manufacturer (OEM) customer programs on schedule. Included in these efforts is the sale of non-core assets that unlock invested capital without disrupting delivery of OEM customer programs. Specifically, the company has completed the sale of its Michigan Tech Center assets located in Plymouth, MI, for a total value of over $12 million. Of the total, $11.5 million was received in cash with the remaining to be received as in-kind strategic value including access to test cells, facility space and other supporting equipment.
The Michigan Tech Center has been the center of excellence for Westport's enhanced spark ignited (ESI) natural gas engine technology development programs. Westport has negotiated access rights to maintain and even accelerate development programs. The sale does not negatively impact other existing or future development programs and Westport will continue to have access to the test cells as needed.
"With the closing of the Fuel Systems merger, the company has expanded its global footprint and we have already identified opportunities for synergies and greater operating efficiency," says Nancy Gougarty, CEO of Westport Fuel Systems. "This sale is just one example. I'd like to emphasize that the sale of the Michigan Tech Center assets does not in any way diminish our company's commitment to our OEM customers in Michigan and elsewhere around the world. We look forward to continuing to work with our partners in the region for many years to come. We are pleased to have completed this sale and the proceeds will help improve our balance sheet."
Through the merger, Westport's Technical Center facilities in North America doubled from two locations to four locations, including Plymouth, MI; Sterling Heights, MI; Kitchener, Ontario; and Vancouver, British Columbia. As part of the ongoing drive for efficiencies within the merged entities, Westport has begun evaluating and implementing consolidation activities.
In addition to the above sale, Westport has received additional proceeds from the sale of assets in Union City, IN, and relocated its operations to Westport's existing operation in Dallas, TX. Westport is committed to supporting all of its existing customers during this transition.