SANTA ANA, Calif., May 14, 2007 (PRIME NEWSWIRE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) today announced the signing of an agreement to acquire Zavoli S.r.l., a privately held manufacturer and distributor of aftermarket conversion kits that enable internal combustion engines to operate on liquefied petroleum gas (LPG) and compressed natural gas (CNG). The acquisition is expected to close in the third quarter of 2007 and is subject to customary closing conditions.
Founded in the early 1990s in Cesena, Italy, Zavoli, which will continue to operate and market its products under its brand name, recorded sales in 2006 of approximately $16 million. More than 75 percent of its revenues in 2006 were generated outside of Italy.
"This transaction enables the company to expand its global LPG and CNG conversion market position with an established international brand and customer base. Gaseous fuels represent important solutions around the world that address dependency on foreign oil, environmental considerations and escalating gasoline prices, and we intend to pursue opportunities to continue to leverage the company's leadership position in this sector," said Mariano Costamagna, president and chief executive officer of Fuel Systems Solutions.
Fuel Systems Solutions is a holding company currently comprised of two operating subsidiaries, IMPCO Technologies and BRC Gas Equipment. Additional information is available at www.fuelsystemssolutions.com. IMPCO designs, manufactures, markets and supplies advanced products and systems to enable internal combustion engines to run on clean burning gaseous fuels such as natural gas, propane and biogas. IMPCO is a leader in the heavy duty, industrial, power generation and stationary engines sectors. Headquartered in Santa Ana, California, IMPCO has offices throughout Asia, Europe, Australia and North America. Additional information is available at www.impcotechnologies.com. BRC produces a complete range of systems for converting vehicles to gaseous fuel to meet market requirements. 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. Headquartered in Cherasco, Italy, BRC has offices throughout Asia, Europe and South America. Additional information is available at www.brc.it
This press release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, expressed or implied statements concerning the company's expectations regarding the acquisition of Zavoli, the timing of that acquisition and the expected benefit from its acquisition of Zavoli. Such statements are only predictions, and the company's actual results may differ materially. Factors that may cause the company's results to differ include, but are not limited to: risks that closing conditions are not satisfied including satisfactory due diligence review by the company; that the company's due diligence review will not be completed in a timely manner; risks that the announcement of this transaction will cause disruption of the company's operations and distraction of its management; risks that the company is unable to successfully integrate Zavoli and BRC; and risks of adverse regulatory action or litigation as a result of the transaction.