Italy-based Landi Renzo S.p.a. and California-based Clean Energy Fuels Corp. have announced that the two companies are combining their compressor manufacturing subsidiaries to form a new standalone company that will become one of the leading suppliers of natural gas compressors and other related products across the world. In the announcement, the partners claim the decision sets up “a new global powerhouse.”
Landi Renzo’s SAFE, with a strong presence in Europe and Asia, and Clean Energy Compression, which is well established in the North and South America markets, will combine manufacturing and support operations and equip an international sales team with an expanded line of compressors featuring their latest technologies.
Upon closing, which is anticipated before the end of the year, Landi Renzo will own 51% of the new company and take over operational management, while Clean Energy will retain a 49% ownership. Andrew J. Littlefair, president and CEO of Clean Energy, will serve as the chairman of the board. The combined company will be headquartered in Italy and retain Clean Energy’s manufacturing operation in British Columbia. Financial details of the deal were not disclosed.
“The world is rapidly waking up to the harmful impact that diesel is having on air quality,” says Cristiano Musi, who is currently group CEO of Landi Renzo and will also be the CEO of the new company. “Natural gas is an obvious alternative for vehicles because it burns much cleaner, is plentiful around the world and there is a growing engine portfolio to choose from. This newly formed compressor company will be uniquely positioned to take advantage of the trend toward natural gas with a global footprint and a great product offering.”
“SAFE and Clean Energy Compression’s businesses, when combined, establish a completely complementary structure in geography, expertise and highly competitive products,” says Littlefair. “Consolidating operations and corporate functions is expected to enable the new company to focus on manufacturing efficiencies with the best technologies and reduce redundant overhead, resulting in improved margins.”
According to the partners, the new company will be able to take advantage of its global positioning, product offering and market penetration required to meet the growing demand of transportation fleets that seek solutions to replace diesel. The combination of SAFE and Clean Energy Compression will help the new company achieve leading positions in Europe and North American and lay the foundation to accelerate growth in new geographies of the Middle East, Africa and Asia, the partners add.