Clean Air Power, a developer of dual-fuel natural gas systems for heavy-duty vehicles, has been acquired by U.K.-based Vayon Group.
As the company explains on its website, ‘Clean Air Power designs, develops and delivers Dual-Fuel and second-generation MicroPilot engine systems to enable heavy-duty, compression-ignited engines to run on natural gas mixed with small quantities of diesel to act as the 'spark' that ignites the gas.’ The Clean Air Power website also says the company has locations in Lancashire, U.K., and Poway, Calif.
In a statement, Vayon Group Chairman Shane Hussain says, ‘On behalf of the Vayon Group, I am pleased to announce the acquisition of Clean Air Power, as our latest commitment to expanding and improving the services which Vayon provides for low-carbon and electric propulsion system technologies to customers across the transport market.’
Notably, Vayon recently acquired Hardstaff Dual Fuel Technology, a U.K.-based company also focused on dual-fuel systems.
“Clean Air Power provides skills, technology and market reach, which complements those within Hardstaff Dual Fuel Technology, an existing Vayon Group business,” says Hussain. “The integration of these businesses provides the group with a unique position from which to strengthen the existing commitment to our customers low-carbon ambitions.
“It is our intention to build on our customers and employee loyalty, developing new solutions for [on-road and off-road] applications, whilst maintaining our level of professional support for existing products,” continues Hussain.
According to the Vayon Group's website, the dual-fuel operations join Vayon's portfolio of other companies, including FrostEV Systems, an integrator of electric and hybrid vehicle systems; GoodWolfe Energy, a supplier of bespoke high-voltage lithium-ion battery systems; and Ashwoods Energy, a supplier of battery management systems and battery pack integration.
In a recent press release, Rodney Westhead, chairman of Clean Air Power, explains why the company entered the acquisition deal.
“As noted in previous trading updates, the fall in oil prices globally has had a drastic impact on sales in the U.S. and Russia,” says Westhead. “This significant challenge to the business was compounded by our customer on the South East Asian program deciding in June this year to extend testing rather than to proceed directly to the full production program as anticipated. These circumstances created significant pressure on the group's cashflows.
“The board, supported by KPMG, has conducted an exhaustive strategic review, exploring a range of refinancing and restructuring options to maximize the value of the group, but the response from potential investors and buyers was disappointing,” he adds. “The group could not continue without financial support and, therefore, the board is satisfied that this was the best course of action.”
