Westport closes light-duty segment sale for $79.5M

Executive Summary

• Westport Fuel Systems Inc. has closed the previously announced sale of its light-duty segment to Heliaca Investments Cooperatief UA.
• The transaction includes the sale of Westport Fuel Systems Italia Srl, covering light-duty OEM, delayed OEM, and independent aftermarket businesses.
• The divestiture is part of a strategic shift to focus on heavy-duty, high-horsepower commercial mobility and industrial applications, aiming to strengthen the balance sheet and sharpen market focus.

Key Details

• Transaction Structure: Sale of the light-duty segment to a wholly owned investment vehicle of Heliaca Investments Cooperatief UA (Netherlands-based), supported by Ramphastos Investments Management BV.
• Assets Sold: Westport Fuel Systems Italia Srl, encompassing the light-duty original equipment manufacturer (OEM), delayed OEM, and independent aftermarket businesses.
• Financial Consideration:
  • Base price: Approximately $79.5 million (67.7 million euros), subject to certain adjustments.
  • Potential earnouts: Up to a revised estimate of $3.9 million (3.3 million euros) based on future performance milestones.
• Strategic Focus: Westport is rightsizing operations to focus on:
  • Cespira: Strategic market expansion and technology leadership in heavy-duty transportation and off-road high-horsepower mobility.
  • High-pressure controls and systems: Supporting multiple powertrain platforms.
  • Financial initiatives: Balancing opportunity scale, execution performance, and dynamic market conditions.
• Future Outlook: The company aims to provide economical solutions for heavier-duty and high-horsepower commercial mobility and industrial applications, leveraging fuel-agnostic, high-pressure fuel systems.
• Next Steps: Westport will provide additional details on the transaction and strategy during the second quarter financial results conference call.
• Earnings Release: Second quarter 2025 results are scheduled to be released on Monday, August 11, 2025, after market close.

Notable Quotes

• "The successful completion of the disposition of our light-duty segment marks a pivotal step in strengthening our balance sheet," said Dan Sceli, chief executive officer of Westport Fuel Systems. "More importantly, it allows Westport to sharpen our focus on the larger, higher-growth opportunities ahead..."
• "The transportation landscape is shifting, and customer demand for cleaner, smarter and more sustainable solutions continues to accelerate," added Mr. Sceli. "We're seeing renewed attention on CNG and LNG fuelled platforms, and Westport is uniquely positioned to deliver the necessary products and technologies."