SEAL BEACH, CA - Clean Energy Fuels Corp. has entered into a securities purchase agreement to acquire Wyoming Northstar Inc. and its affiliates for approximately $10.9 million in cash.
Approximately $7.4 million will be paid at closing, with the balance paid in equal installments on each yearly anniversary date beginning in 2011 and ending in 2015, Clean Energy said. Clean Energy will also pay retention bonuses not to exceed $4 million in the aggregate over the four-year period following closing.
Northstar is a major leader in LNG/LCNG (liquefied to compressed natural gas) fueling system technologies, including the manufacture of one of only two weights-and-measures certified LNG dispensers. Northstar has provided LNG station design, construction, operations and maintenance for major clients, and has worked closely with Clean Energy for several years.
"Having Northstar, the premier LNG station provider, in our group will greatly enhance our ability to build out the growing natural gas fueling infrastructure in the United States," said Andrew J. Littlefair, Clean Energy's president and CEO. "Our plan envisions a fueling infrastructure serving major goods movement and trucking corridors nationwide."
Clean Energy recently announced an agreement with Pilot Flying J Travel Centers to build, own and operate public-access LNG fueling facilities at agreed-upon Pilot Flying J truck travel centers nationwide. Pilot Flying J operates over 550 truck travel centers in 43 states and six Canadian provinces.
Littlefair added: "On the international front, growing interest in LNG fueling in markets such as China, where we have a strong developing presence through our subsidiary, IMW Industries, may provide infrastructure opportunity as well."
Clean Energy is a major provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market.