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July 1, 2013

Westport acquires BAF, subsidiary

Westport Innovations Inc. acquired BAF Technologies Inc. (BAF) and its subsidiary, ServoTech Engineering Inc., subsidiaries of Clean Energy Fuels Corp. for $25 million in Westport stock. Westport and Clean Energy also announced a $5 million joint marketing and sales program.

Westport believes that the amalgamation will create the largest product portfolio and largest market presence in the North American light duty natural gas vehicle (NGV) space. Specifically, Westport secures its position as Ford's largest partner under the Qualified Vehicle Modifier (QVM) program with more than 10 products and approximately 150 Ford authorized dealerships.

The transaction allows both Westport and Clean Energy to focus on the significant growth opportunities as natural gas emerges as a global fuel for transportation.  

BAF supports clients with vehicle conversions through the Ford QVM program and aftermarket conversion products, alternative fuel systems, application engineering, service and warranty support. ServoTech offers a total engineering solution from initial concept phase to prototype hardware and final prove-out, including design and development of electronic products, software development, automotive exhaust simulation and testing, spark-ignition gasoline and diesel emissions technology, and offers technical training and education in a variety of subject areas.

Currently, Westport exclusively installs the natural gas Westport WiNG Power System on the Ford F-250 through F-550 series at its assembly center in Louisville, Ky. The acquisition increases Westport's product range with the Ford line to include transit, cargo shuttle and taxi vehicles and dedicated natural gas vehicles for markets, such as California.

BAF has been producing a broad list of natural gas vehicle conversions for more than a decade and recently produced its 20,000th compressed natural gas vehicle conversion. Westport will continue to install the Westport WiNG Power System and the increased volume of orders expected through BAF will create economies of scale, and the BAF network will allow more flexibility in producing specialty configurations.

RELATED: "Green Projects Help Transit Be More Sustainable Off the Road."

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