Westport signs investment agreement to establish JV with Volvo

Westport (WPRT) announced the signing of an investment agreement to establish the previously announced joint venture with Volvo (VLVLY) to accelerate the commercialization and global adoption of Westport’s HPDI fuel system technology for long-haul and off-road applications. The closing of the JV is subject to certain closing conditions, including regulatory and government approvals. It is anticipated that the JV will become operational following the formal closing which is currently expected to occur in the second quarter of 2024. As previously announced, Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property, and business, into the JV. Volvo Group will acquire a 45% interest in the JV for the sum of approximately $28M, payable upon closing, plus up to an additional $45M as an earn out depending on the subsequent performance of the JV.