Westport Announces Agreement to Divest the Light-Duty Segment for $73.1 Million
Westport Fuel Systems (TSX/Nasdaq: WPRT) has announced a binding agreement to sell its Light-Duty segment to Heliaca Investments for $73.1 million, with potential earnouts of up to $6.5 million. The transaction, expected to close in late Q2 2025, includes the light-duty OEM, delayed OEM, and independent aftermarket businesses.
This strategic divestment allows Westport to focus on providing solutions for hard-to-decarbonize mobility and industrial applications, centered around HPDI technology and the Cespira joint venture. The company will concentrate on the heavy-duty truck, off-road, and industrial markets, leveraging natural gas (LNG, CNG, RNG) as its foundation while developing hydrogen solutions.
The proceeds will strengthen Westport's balance sheet and enable strategic acquisition opportunities. Post-closing, the company plans to restructure its cost base to reflect a smaller, more efficient organization.
Westport Fuel Systems (TSX/Nasdaq: WPRT) ha annunciato un accordo vincolante per vendere il suo segmento Light-Duty a Heliaca Investments per 73,1 milioni di dollari, con potenziali guadagni di fino a 6,5 milioni di dollari. La transazione, che ci si aspetta si chiuda entro la fine del secondo trimestre del 2025, include le attività di OEM light-duty, OEM ritardato e aftermarket indipendente.
Questa dismissione strategica consente a Westport di concentrarsi sulla fornitura di soluzioni per la mobilità e le applicazioni industriali difficili da decarbonizzare, incentrate sulla tecnologia HPDI e sulla joint venture Cespira. L'azienda si concentrerà sui mercati dei camion pesanti, off-road e industriali, sfruttando il gas naturale (LNG, CNG, RNG) come base, mentre svilupperà soluzioni a idrogeno.
I proventi rafforzeranno il bilancio di Westport e consentiranno opportunità di acquisizione strategica. Dopo la chiusura, l'azienda prevede di ristrutturare la sua base di costi per riflettere un'organizzazione più piccola e più efficiente.
Westport Fuel Systems (TSX/Nasdaq: WPRT) ha anunciado un acuerdo vinculante para vender su segmento de Light-Duty a Heliaca Investments por 73,1 millones de dólares, con posibles ganancias de hasta 6,5 millones de dólares. Se espera que la transacción se cierre a finales del segundo trimestre de 2025 e incluye las actividades de OEM light-duty, OEM retrasado y el mercado de repuestos independiente.
Esta desinversión estratégica permite a Westport centrarse en proporcionar soluciones para la movilidad y las aplicaciones industriales difíciles de descarbonizar, centradas en la tecnología HPDI y la empresa conjunta Cespira. La compañía se concentrará en los mercados de camiones pesados, fuera de carretera e industriales, aprovechando el gas natural (LNG, CNG, RNG) como base, mientras desarrolla soluciones de hidrógeno.
Los ingresos fortalecerán el balance de Westport y permitirán oportunidades de adquisición estratégica. Después del cierre, la empresa planea reestructurar su base de costos para reflejar una organización más pequeña y eficiente.
Westport Fuel Systems (TSX/Nasdaq: WPRT)는 Heliaca Investments에 7310만 달러에 Light-Duty 부문을 판매하는 구속력 있는 계약을 발표했습니다. 최대 650만 달러의 추가 수익이 발생할 수 있습니다. 이 거래는 2025년 2분기 말에 마감될 예정이며, light-duty OEM, 지연된 OEM 및 독립 애프터마켓 사업을 포함합니다.
이 전략적 매각은 Westport이 HPDI 기술과 Cespira 합작 회사를 중심으로 탈탄소화가 어려운 이동성과 산업 응용 프로그램에 대한 솔루션 제공에 집중할 수 있게 해줍니다. 회사는 LNG, CNG, RNG와 같은 천연가스를 기반으로 하여 중형 트럭, 오프로드 및 산업 시장에 집중할 것입니다. 또한 수소 솔루션을 개발할 예정입니다.
수익금은 Westport의 재무 상태를 강화하고 전략적 인수 기회를 가능하게 할 것입니다. 거래 완료 후, 회사는 더 작고 효율적인 조직을 반영하기 위해 비용 구조를 재편할 계획입니다.
Westport Fuel Systems (TSX/Nasdaq: WPRT) a annoncé un accord contraignant pour vendre son segment Light-Duty à Heliaca Investments pour 73,1 millions de dollars, avec des gains potentiels allant jusqu'à 6,5 millions de dollars. La transaction, qui devrait se clôturer fin du deuxième trimestre 2025, comprend les activités OEM light-duty, OEM retardé et le marché indépendant des pièces de rechange.
Cette cession stratégique permet à Westport de se concentrer sur la fourniture de solutions pour des applications de mobilité et industrielles difficiles à décarboniser, centrées sur la technologie HPDI et la coentreprise Cespira. L'entreprise se concentrera sur les marchés des camions lourds, hors route et industriels, en s'appuyant sur le gaz naturel (LNG, CNG, RNG) comme fondement tout en développant des solutions à hydrogène.
Le produit de la vente renforcera le bilan de Westport et permettra des opportunités d'acquisition stratégique. Après la clôture, l'entreprise prévoit de restructurer sa base de coûts pour refléter une organisation plus petite et plus efficace.
Westport Fuel Systems (TSX/Nasdaq: WPRT) hat eine verbindliche Vereinbarung zur Veräußerung seines Light-Duty-Segments an Heliaca Investments für 73,1 Millionen US-Dollar bekannt gegeben, mit potenziellen Earnouts von bis zu 6,5 Millionen US-Dollar. Die Transaktion, die voraussichtlich Ende des zweiten Quartals 2025 abgeschlossen wird, umfasst die Light-Duty-OEM-, verzögerten OEM- und unabhängigen Aftermarket-Geschäfte.
Diese strategische Veräußerung ermöglicht es Westport, sich auf die Bereitstellung von Lösungen für schwer zu dekarbonisierende Mobilität und industrielle Anwendungen zu konzentrieren, die sich auf die HPDI-Technologie und das Joint Venture Cespira konzentrieren. Das Unternehmen wird sich auf die Märkte für schwere Lkw, Off-Road- und Industriebereiche konzentrieren und dabei Erdgas (LNG, CNG, RNG) als Grundlage nutzen, während es Wasserstofflösungen entwickelt.
Die Einnahmen werden die Bilanz von Westport stärken und strategische Akquisitionsmöglichkeiten ermöglichen. Nach dem Abschluss plant das Unternehmen, seine Kostenstruktur zu restrukturieren, um eine kleinere und effizientere Organisation widerzuspiegeln.
- Significant cash injection of $73.1M with potential additional $6.5M in earnouts
- Strengthening of balance sheet and increased financial flexibility
- Strategic focus on core HPDI technology and Cespira joint venture
- Cost structure optimization through organizational restructuring
- Opportunity for strategic acquisitions in core business areas
- Loss of revenue stream from Light-Duty segment
- Reduction in business diversification
- Transaction subject to shareholder approval and closing conditions
- Organizational restructuring may incur short-term costs
Insights
Westport's $73.1 million divestiture of its Light-Duty segment represents a transformative transaction, with the base purchase price exceeding the company's entire market capitalization of
The transaction delivers three critical financial benefits: it significantly strengthens the balance sheet, provides capital for strategic growth initiatives, and enables operational streamlining. For a company of Westport's size, this cash infusion represents a game-changing opportunity to realign its business around higher-margin segments while extending its operational runway.
By divesting the Light-Duty segment, management is making a calculated decision to concentrate resources on hard-to-decarbonize sectors where their proprietary HPDI technology and Cespira joint venture can deliver greater competitive advantages. The company's intellectual property in high-pressure fuel systems creates a defensible moat that's potentially more valuable in industrial and heavy-duty applications than in the increasingly competitive light-duty market.
This transaction effectively de-risks Westport's financial profile while creating flexibility for targeted acquisitions that align with their refocused strategy. The planned cost structure realignment should improve operational efficiency and potentially accelerate the path to sustainable profitability in their remaining business segments.
Westport's strategic pivot represents a significant repositioning within the alternative fuels landscape. By divesting their Light-Duty segment and focusing exclusively on hard-to-decarbonize applications, the company is specializing in precisely the sectors where alternative fuels face the least competition from electrification strategies.
The timing is opportune given the article's mention of a "resurgence of natural gas and renewable natural gas globally" – particularly in North America where natural gas infrastructure is abundant and RNG production is increasing. Westport's "timeline-agnostic" approach is strategically sound: leveraging existing demand for natural gas solutions while positioning for eventual hydrogen adoption.
Their High-Pressure Controls & Systems segment and stake in Cespira create a complementary portfolio of technologies that can address both near-term decarbonization with low-carbon fuels and long-term zero-carbon solutions. This dual-timeline approach differentiates Westport from pure-play hydrogen companies that lack immediate market applications.
The company's extensive intellectual property in high-pressure fuel systems creates technology differentiation across multiple fuel types. By shedding the Light-Duty segment, Westport eliminates business complexity and can concentrate R&D resources on its most promising technologies rather than managing disparate business units. This focused approach should accelerate innovation in their core technologies while enabling more effective commercialization strategies for heavy-duty, off-road, and industrial applications where decarbonization remains technically challenging.
The Proposed Transaction Sharpens the Company’s Focus on Providing Solutions for Hard-to-Decarbonize Mobility and Industrial Applications, Strengthens its Balance Sheet, and Provides Capital to Re-Invest in Near-Term Growth
VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport" or the "Company") (TSX:WPRT / Nasdaq:WPRT), has entered into a binding agreement (the “Agreement”) to sell its interest in Westport Fuel Systems Italia S.r.l., which includes the Light-Duty segment, including the light-duty OEM, delayed OEM, and independent aftermarket businesses, to a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. (“Heliaca Investments”), a Netherlands based investment firm supported by Ramphastos Investments Management B.V. a prominent Dutch venture capital and private equity firm (the “Transaction”). The Transaction provides for a base purchase price of
Moving forward, Westport intends to concentrate fully on providing affordable solutions for hard-to-decarbonize mobility and industrial applications, centered around the unique opportunities created by the HPDI technology and our Cespira joint venture. The Transaction also strengthens Westport’s balance sheet and enables Westport to consider strategic acquisition opportunities consistent with the above strategic focus and extend its runway to fund near-term growth.
“This Transaction marks a significant milestone in our evolution as an alternative fuel systems enterprise. 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 Light-Duty segment has been an important part of our history, and we are confident that Heliaca Investments is the right partner to continue its development. This Transaction allows us to streamline our operations, sharpen our focus on innovation, and create long-term value for our stakeholders. We are excited about the opportunities ahead and look forward to building on our momentum,” said Dan Sceli, Chief Executive Officer of Westport Fuel Systems.
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. The Transaction is subject to shareholder approval and other customary closing conditions and is expected to close in late Q2 of 2025.
The proceeds from the proposed Transaction are expected to enable Westport to significantly improve its financial stability, while also supporting key growth initiatives focused on providing solutions for hard-to-decarbonize mobility and industrial applications. 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.
Strategic Transformation
The proposed divestiture is a pivotal step in refocusing Westport on its competitive strengths. Westport remains committed to providing affordable, alternative fuel solutions for the heavy-duty truck, off-road, and industrial markets. Westport believes that hydrogen will play a role in decarbonizing mobility applications long-term. However, Westport’s products are timeline-agnostic, allowing the Company to leverage its High-Pressure Controls and Systems segment and its stake in Cespira, which both have solutions available now, to address decarbonization with net zero and low carbon fuels while also providing affordable solutions utilizing zero carbon hydrogen in the future. Westport’s remaining assets, when combined, create the potential for fuel agnostic high-pressure storage solutions, complementing HPDI and Cespira’s growth aspirations.
As the hydrogen ecosystem evolves, Westport views the natural gas market, including LNG, CNG and RNG as our foundation, with strong economics in many geographies and diverse growth opportunities. The Company’s GFI products are already industry leading on a global scale and backed by intellectual property rights that are expected to strengthen our already significant competitive advantage in high-pressure fuel solutions.
Moreover, the Company will consider strategic merger and acquisition opportunities that align with the reimagined strategic focus.
Creating Focus
The resurgence of natural gas and renewable natural gas globally provides a market opportunity for Westport. In particular, while HPDI technology is well positioned and established in Europe, the North American market presents many growth opportunities. North America is again embracing natural gas and renewable natural gas as an important part of the solution to reduce the cost and the carbon footprint of heavy-duty long-haul trucking. Natural gas infrastructure is abundant and RNG production is growing.
As we wait for hydrogen adoption, both Cespira and our High-Pressure Controls & Systems segment have products and technologies enabling the use of lower-carbon fuels today. These same products are equally viable in the future as hydrogen adoption ramps up. In the near-term, our High-Pressure Controls and Systems business has expertise in high-pressure components, providing the capability to rapidly develop CNG high pressure solutions for heavy-duty, off-road and industrial applications, providing effective solutions for decarbonization by utilizing alternative fuels today while advancing zero-emissions hydrogen solutions for the future. Additionally, the Company holds extensive intellectual property assets related to high-pressure fuels for HPDI engines. These initiatives are being designed to strengthen Westport’s competitive position and reinforce its role in advancing low-carbon fuel solutions for hard-to-decarbonize mobility applications.
Advisors
J.P. Morgan is acting as financial advisor to Westport and is providing a fairness opinion to the board of directors in connection with the Transaction. Bennett Jones LLP and Delfino Willkie are acting as legal advisors to Westport, and E&Y is acting as tax advisor to the Company.
Gianni & Origoni, NautaDutilh, Wardyński & Partners and PwC are advising Heliaca Investments in connection with the Transaction.
About Westport Fuel Systems
At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and 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 required by transportation applications 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 approximately 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the closing of, and timing for closing of, the Transaction, shareholder approval of the Transaction, the anticipated benefits of the Transaction, including potential earn-out payments, the Transaction alleviating liquidity concerns, the ability to strengthen our balance sheet and align our cost structure, the ability to capitalize on growth initiatives, including fund strategic acquisitions, the ability to transition to a smaller, more efficient organization and our expectations regarding the future success of our business, the adoption of hydrogen and the future growth and development of HPDI. Other forward-looking statements included in the release include those relating to Westport’s future strategic plans, business opportunities and use of the Transaction proceeds. These statements are neither promises nor guarantees but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activities, performance, or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties, and assumptions include those related to completion and satisfaction of all conditions to closing of the Transaction set out in the Agreement, governmental policies, regulation and approval, the achievement of the performance criteria required for the earn out described above, purchase price adjustments contained in the Agreement, the demand for high-pressure storage solutions and other products, 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 with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that 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 by reference herein.
Investor Inquiries:
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T: +1 604-718-2046
E: invest@wfsinc.com
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