Fuel Systems Solutions (FSYS) Acquires EvoTek For $7 Million; Completes Productive Concepts Deal

Fuel Systems Solutions (FSYS) is on the acquisition trail this morning and has acquired privately held EvoTek LLC that provides dedicated CNG and LPG conversion systems across multiple U.S. fleet vehicle platforms. One of its customers includes BAF Technologies, a subsidiary of Clean Energy Fuels (CLNE).  The $7.0 million deal consists of $4 million in cash and $3 million in stock.  The company also announced it completed the purchase of Productive Concepts International fuel vehicle business which was announced Aug 5th. 

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CEO Mariano Costamagna commented: “The combination of EvoTek and PCI with our existing U.S. automotive business is transformative for Fuel Systems in the U.S. marketplace.  The development of the U.S. alternative fuel vehicles market is now accelerating and these transactions allow us to build on our strong, unique leadership position in this market. We remain dedicated to meeting the demands of evolving OEM alternative fuel programs.”

CFOMatthew Beale chimed in on what the two acquisitions bring to the table: ”

“EvoTek is a strategic transaction that immediately positions Fuel Systems to compete in the dedicated natural gas vehicle (NGV) OEM market emerging in the United States. PCI adds key technology and industry relationships to further our North American OEM and fleet market strategy, and its selection by General Motors to supply CNG fuel delivery and storage systems for the Chevrolet Express and GMC Savana vans is an exciting opportunity to leverage our combined platforms for these customers’ evolving alternative fuel vehicle strategy. PCI also expands our vehicle modification and systems integration capabilities for a variety of alternative fuel applications, including hybrid, CNG, propane and dual-fuel diesel.”

Shares of FSYS are up a little over 1% today and continue to look considerably bullish on the daily chart and may be carving out a bullish wedge formation above the 200 day moving average.

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