Share prices of Westport Fuel Systems (TSX:WPRT) jumped more than 15% April 17 after the company announced it has signed a definitive agreement to sell all the assets of its auxiliary power unit (APU) for US$70 million.
The Vancouver-headquartered alternative fuel company did not disclose the name of the buyer in its news release, and as of press time, it has not responded to a request for the information.
Company CEO Nancy Gougarty said the sale is part of an ongoing portfolio review that began with a merger with New York-based Fuel Systems Solutions in 2016. Westport said the move fits in with its strategy to streamline its business and product lines and focus on alternative fuel.“After a careful assessment of the APU product line and its fit with the other Westport Fuel Systems businesses, we decided it made the most sense for our shareholders to pursue this sale,” Gougarty said.
The deal is expected to close in the next few weeks, Westport said.