Power Solutions International Inc. (PSI), a designer and manufacturer of alternative fuel power systems, has agreed to purchase Powertrain Integration LLC, a Michigan-based on-highway power system manufacturer.
For over 10 years, Powertrain Integration has provided General Motors on-highway powertrain solutions, including systems, components and services, for niche on-highway OEMs and fleets. The company specializes in alternative fuel and gasoline systems and offers design, engineering, testing and engine calibration to deliver one-stop on-highway vehicle integration.
PSI says the definitive agreement provides for the purchase of the assets of Powertrain Integration and the assumption of certain liabilities. The purchase price consists of $21.6 million in cash and targeted contingent consideration of $8 million in cash. PSI says the acquisition is expected to close in about 30 days and significantly solidify the company's on-highway market position.
Through a multiyear agreement with Freightliner Custom Chassis Corp., Powertrain Integration equips several prominent customers, including UPS and vehicle manufacturer Morgan Olson. In November 2014, Powertrain Integration announced the delivery of 1,000 GM 6.0-liter propane engine packages to Freightliner for UPS vehicles. Recently, the company received a similar order from Freightliner for 600 additional natural gas and propane engines, also for UPS.
‘This acquisition fits perfectly into our on-highway strategy,’ says Gary Winemaster, PSI's chairman and CEO. ‘We're not only expanding our product portfolio to give customers more options – we're also adding [Powertrain Integration's] years of on-highway experience, its technical expertise, and its strong customer relationships to our own capabilities.’
Both companies share a long history with GM, and PSI claims it is now positioned as the only on-highway OEM integrator for GM powertrains, utilizing the GM 8.0-liter, 6.0-liter and 4.8-liter engine blocks, along with other new options as they become available.
Furthermore, PSI notes it is presenting a new propane autogas concept vehicle at the 2015 Alternative Clean Transportation (ACT) Expo in Dallas.
PSI says it is jointly developing the vehicle with Navistar International Corp., leveraging off of the success of the new autogas-fueled IC Bus that both companies developed for launch this year. The new bus goes into service beginning with the 2015/2016 school year.
The two companies are applying the knowledge from that project – along with the same PSI 8.8-liter autogas engine – and adapting it for the medium-duty truck market. Navistar expects the new vehicle to join its Durastar product line, providing an autogas truck capable of serving a wide range of vehicle applications, including beverage and goods delivery, propane bobtails, landscape, tree care, and utility.
PSI says it is also displaying a fully integrated, finished product: a Class 7 autogas-powered vehicle developed with Alkane Truck Co. of South Carolina, the first project from the two companies to hit the market. The medium-duty truck, suitable for a wide range of applications, including delivery, industrial and emergency vehicles, also features PSI's 8.8-liter autogas engine.