Westport Fuel Systems Inc. announced it has entered into lock-up agreements with certain shareholders, executives, and board members, representing approximately 11.4% of its outstanding shares. These agreements commit them to vote in favor of the special resolution approving the sale of Westport Fuel Systems Italia S.r.l., which encompasses the Light-Duty segment.
The divestment transaction, initially announced on March 31, 2025, involves selling the Light-Duty business to Heliaca Investments for a base purchase price of $73.1 million (€67.7 million), with potential earnouts up to $6.5 million (€6.0 million). This move is intended to strengthen Westport's balance sheet and allow it to focus on hard-to-decarbonize heavy-duty and industrial applications.
Dan Sceli, CEO of Westport Fuel Systems, stated that these lock-up agreements signify a vote of confidence in the company's strategic direction. The transaction is subject to shareholder approval and other customary closing conditions, with an expected closing in late Q2 2025.
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