-- Orbital Corporation completes acquisition of Sydney-based Tier 1 LPG fuel systems supplier, Boral Alternative Fuel Systems, for A$1.6 million. -- Business to commence trading as Orbital Gas Products (OGP).
SYDNEY, Australia, June 26 /PRNewswire-FirstCall/ -- International clean
energy technology group, Orbital Corporation Limited (ASX: OEC - "Orbital"),
is pleased to advise that it has completed the acquisition of the leading
Sydney-based LPG fuel systems supplier, Boral Alternative Fuel Systems
("BAFS"), with the business to commence trading as "Orbital Gas Products".
The acquisition of BAFS - which is a Tier One supplier to the global
automotive group, Ford Motor Corporation - marks a significant expansion by
Orbital into the rapidly growing Australian and New Zealand alternative fuel
system markets
All conditions precedent have been satisfied and Orbital Corporation
officially completed the acquisition of the BAFS operation, located in Arndell
Park in Sydney's western suburbs today.
The business, which currently generates annual revenue of approximately
A$6 million, will trade under the new name "Orbital Gas Products" (OGP) and is
expected to be earnings per share accretive for Orbital.
Luke Colzato, Manager for Boral Alternate Fuel Systems, said: "The staff
and I are excited about the change and we are looking forward to joining the
Orbital team today. Orbital brings the engine and fuel systems experience
required to successfully introduce greenhouse friendly reliable Euro IV
Autogas systems to the OEM's and Aftermarket businesses."
Commenting on the acquisition, Orbital's CEO, Mr. Terry Stinson, said:
"The acquisition of the BAFS LPG systems supply business to our portfolio is
part of our strategy to grow the Orbital business through acquisitions that
focus on improving the environment and helping our customers save energy.
"The combination of vast quantities of readily available LPG, the Federal
Government subsidy for the conversion of petrol based fuel systems to LPG and
the increasing price of petrol are creating a strong market pull for an
improved LPG product line. Using Orbital's engine and fuel system knowledge
and experience, combined with the Boral acquisition, we will be able to expand
our revenue base, increase profits and secure better returns for our
shareholders," he continued.
"Through OGP, Orbital will continue to deliver innovative, energy
efficient, environmentally friendly engine and related technologies and in
future secure a significant position in the alternative fuels market," he
added.
About Orbital
Orbital is an international developer of innovative technical solutions
for a cleaner world. Orbital provides innovation, design, product development
and operational improvement services to the world's producers, suppliers,
regulators and end users of engines and engine management systems for
application in motorcycles, marine and recreational vehicles, automobiles and
trucks. Orbital's principal operations in Perth, Western Australia, provide a
world class facility with capabilities in design, manufacturing, development
and testing of engines and engine management systems. Headquartered in Perth,
Western Australia, Orbital stock is traded on the Australian Stock Exchange
(OEC) and the OTC Bulletin Board (OBTLY).
Forward Looking Statements
This release includes forward-looking statements that involve risks and
uncertainties. These forward-looking statements are based upon management's
expectations and beliefs concerning future events. Forward-looking statements
are necessarily subject to risks, uncertainties and other factors, many of
which are outside the control of the Company, that could cause actual results
to differ materially from such statements. Actual results and events may
differ significantly from those projected in the forward-looking statements as
a result of a number of factors including, but not limited to, those detailed
from time to time in the Company's Form 20-F filings with the US Securities
and Exchange Commission. Orbital makes no undertaking to subsequently update
or revise the forward-looking statements made in this release to reflect
events or circumstances after the date of this release.
SOURCE Orbital Corporation Limited
