Fuel Systems Solutions Purchases Remaining 50% Interest in MTE S.R.l. for $10.8M
Fuel Systems Solutions (Nasdaq: FSYS) through its wholly owned subsidiary MTM S.r.l., purchased on June 1^st the remaining 50% ownership interest in MTE S.r.l., a premier manufacturer of electronic control units and electronic components for alternative fuel automotive and industrial systems in Italy.
The purchase price is $10.8 million and provides for additional earnout payments of up to $1.44 million, payable in 2014 upon the achievement of certain 2012 and 2013 gross profit hurdles from systems sales to third party customers.
Fuel Systems first purchased a 50% interest in MTE in 2001 and has since 2010 fully consolidated the results of its operations as, as of that year, MTM could exert effective control through its associations with MTE. MTE is now being integrated into MTM, which is expected to improve efficiencies in both the engineering and production of ECU and electronic components for both automotive and industrial systems.
