NEW YORK (AP) -- Fuel Systems Solutions Inc. said Thursday it has agreed to buy the alternative-fuel vehicle business of Productive Concepts International LLC for $10.1 million plus $975,0000 in assumed debt.
The deal is expected to close within 30 days.
Productive Concepts, based in Union City, Ind., modifies vehicles to run on natural gas, propane and other alternative fuel sources. The company supplies General Motors with compressed natural gas (CNG) fuel delivery and storage systems for the Chevrolet Express and GMC Savana vans. It will continue to be led by its existing management team.
Fuel Systems will provide a loan for Productive to pay off some liabilities and capital expenses. The seller will get $6.125 million in cash at closing and $4 million when target system-installation numbers are hit. It could earn up to $20 million in Fuel Systems stock for hitting revenue goals in 2011 and 2012.
Fuel Systems makes alternative-fuel components for vehicles and industrial users.
In afternoon trading, shares rose $4.80, or 16 percent, to $34.35.
