Westport to divest light-duty segment for $73.1M

Westport Fuel Systems Inc., a supplier of advanced fuel delivery components and systems, has entered into a binding agreement to sell its interest in Westport Fuel Systems Italia S.r.l. to a wholly owned investment vehicle of Heliaca Investments Coöperatief U.A., a Netherlands based investment firm. Westport Fuel Systems Italia S.r.l includes the Light-Duty segment, consisting of the light-duty OEM, delayed OEM and independent aftermarket businesses.

Under the terms of the agreement, Heliaca Investments through its subsidiary will acquire Westport’s Light-Duty segment, including its related assets and customer contracts, for a base purchase price of $73.1 million (€67.7 million), subject to certain adjustments, and potential earnouts of up to an estimated $6.5 million (€6.0 million) if certain conditions are achieved, in accordance with the terms of the agreement.

Moving forward, Westport said it intends to concentrate fully on providing affordable solutions for hard-to-decarbonize mobility and industrial applications, centered around the opportunities created by its HPDI technology and its Cespira joint venture. The transaction also strengthens Westport’s balance sheet and enables it to consider strategic acquisition opportunities consistent with its strategic focus and extend its runway to fund near-term growth, the company added.

“This transaction marks a significant milestone in our evolution as an alternative fuel systems enterprise,” said Dan Sceli, CEO of Westport Fuel Systems. “By returning to our roots and focusing on our core strengths, providing solutions in hard-to-decarbonize mobility and industrial applications, we are positioning Westport for sustainable growth and enhanced operational efficiency.”

The proceeds from the transaction are expected to enable Westport to significantly improve its financial stability, while also supporting key growth initiatives. Following closing, Westport intends to align its cost structure to be more reflective of a smaller, more efficient organization, while also seeking further opportunities for efficiency gains.

The transaction is subject to shareholder approval and other customary closing conditions and is expected to close in late Q2 of 2025.