Vancouver’s Westport Innovations Inc. (TSX:WPT) acquired an Italy-based natural gas engine maker for US$23.4 million on Friday.
In the deal to buy OMVL SpA, Westport also acquired OMVL’s 51% share of Juniper Engines Inc., a joint venture between Westport and OMVL – which itself is a subsidiary of Italian multinational SIT Group.
David Demers, Westport’s CEO, said in a release Friday: “With the successful launch of our first Juniper products, and the rapid development of global markets for alternative fuel engines, we have concluded that this strategic combination, with access to Westport's large intellectual property portfolio, could position Juniper as a significant market participant in light-duty engines.”
Westport shares fell $0.02 to $16.73 on Friday.
The acquisition is the latest step by Westport, a dominant player in the medium sized-engine sector despite limited sales, to evolve from a business that loses millions annually into a profitable international supplier of technology behind natural gas engines.
BIV reported in April that Westport is receiving a little help from T. Boone Pickens, the Texas billionaire oilman turned torch-bearing alternative energy proponent. (See “Vancouver-based natural gas engine maker gets the T. Boone Pickens bump” – April 20-26; issue 1069.)