Fuel Systems Solutions, Inc. (ticker: FSYS, exchange: NASDAQ Global Market (.O))
News Release -
Fuel Systems Solutions Purchases Remaining 50% Interest in MTE S.r.l.
NEW YORK, Jun 7, 2011 (GlobeNewswire via COMTEX) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) through its wholly owned subsidiary MTM S.r.l. ("MTM"), purchased on June 1st the remaining 50% ownership interest in MTE S.r.l. ("MTE"), a premier manufacturer of electronic control units ("ECU") and electronic components for alternative fuel automotive and industrial systems in Italy.
The purchase price is $10.8 million and provides for additional earnout payments of up to $1.44 million, payable in 2014 upon the achievement of certain 2012 and 2013 gross profit hurdles from systems sales to third party customers.
Fuel Systems first purchased a 50% interest in MTE in 2001 and has since 2010 fully consolidated the results of its operations as, as of that year, MTM could exert effective control through its associations with MTE. MTE is now being integrated into MTM, which is expected to improve efficiencies in both the engineering and production of ECU and electronic components for both automotive and industrial systems.
About Fuel Systems Solutions
Fuel Systems Solutions (Nasdaq:FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. The Company is composed of two operating subsidiaries: IMPCO Technologies and BRC. IMPCO Technologies is a leader in the heavy duty, industrial, power generation and stationary engines sectors and recently established a U.S. Automotive division. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Additional information is available at www.fuelsystemssolutions.com.
This press release contains certain forward-looking statements that involve risks and uncertainties, including expressed or implied statements concerning the Company's integration of the acquisition. Such statements represent only our opinions and predictions. The Company's actual results may differ materially. Factors that may cause the Company's results to differ include, but are not limited to, our ability to integrate the recently acquired business and to realize the expected synergies. Readers also should consider the risk factors set forth in the Company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K, for the year ended December 31, 2010. The Company does not undertake to update or revise any of its forward-looking statements or guidance even if experience or future changes show that the indicated results or events will not be realized.
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SOURCE: Fuel Systems Solutions, Inc.
CONTACT: Investor Relations Contacts:
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Carolyn M. Capaccio
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