Clean Energy Fuels just announced that they have acquired IMW, a company that builds and maintains advanced natural gas fueling compressors and related equipment for station operators and commercial fleets. Clean Energy Fuels paid $125 million and a cash earn-out arrangement for the company. $75 million will be paid at closing, with $15 million of that amount being paid in cash and the rest in Clean Energy stock. Then, Clean Energy Fuels will pay out $12.5 million each year for the next four years, with at least $5 million of that being paid in cash and the rest in either cash of Clean Energy stock at Clean Energy’s discretion.

Via the earn out arrangement, IMW shareholders will receive a percentage of IMW’s future gross profits, as long as the profit exceeds a minimum threshold. Under the arrangement, IMW will become Clean Energy Fuels’ subsidiary.

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In a press release, Andrew J. Littlefair, Clean Energy President and CEO, explained why his company wanted to acquire IMW:

“This acquisition transforms Clean Energy both in terms of capability and geographic reach. In the US market, we now can provide integrated, advanced compression technology and station-building for our customers, adding value to our service package and broadening our attraction as a one-stop fueling provider. “

“Our core business of providing fueling services in North America is now integrated with domestic NGV vehicle conversions (from our BAF vehicle technology subsidiary), domestic biomethane production (from our landfill gas asset in Dallas, Texas), and with this acquisition we have significant sales, manufacturing and service operations worldwide.”