Seal Beach, CA-based Clean Energy Fuels Corp. announced Wednesday that it has entered a securities purchase agreement to acquire fueling technology provider Wyoming Northstar Inc. for $10.9 million in cash.
About $7.4 million will be paid at closing, Clean Energy said, with the rest paid off in a series of annual payments beginning next year and continuing through 2015. Clean Energy also said as part of the deal it agreed to pay retention bonuses up to $4 million.
Based in Evanston, WY, Northstar bills itself as a leader in liquefied natural gas (LNG) and LNG to compressed natural gas (LCNG) transportation fueling system technologies. It manufactures a weights-and-measures certified LNG dispenser. The technology firm has provided LNG station design, construction, operations and maintenance and worked closely with Clean Energy in recent years.
Earlier this year Clean Energy signed an agreement with Pilot Flying J Travel Centers to build, own and operate public access LNG fueling facilities at Flying J truck travel centers nationwide.
Clean Energy CEO Andrew Littlefair said there is growing international interest in LNG for transportation fueling, particularly in China. Clean Energy subsidiary IMW Industries has a presence in the China LNG transportation fuel market.
"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," Littlefair said.
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