The Australian market for alternative fuel has a new player. Orbital Corporation Limited has announced the acquisition of Boral Alternative Fuel Systems, entering what it believes to be Australia and New Zealand’s rapidly growing alternative fuel system markets.
International clean energy technology group Orbital Corporation Limited, is pleased to announce the addition to its existing portfolio the Australian LPG fuel systems supplier, Boral Alternative Fuel Systems (“BAFS”).
BAFS is Australia’s leading supplier of original equipment LPG fuel systems and is a Tier One supplier to the global automotive group, Ford Motor Corporation.
The acquisition provides Orbital with a low-risk entry into the rapidly growing Australian and New Zealand alternative fuel system markets, and represents a first step in a broader intent to offer ‘next generation’ greenhouse friendly alternative fuel systems that meet the requirements of fleet operators and private buyers.
Under the terms of the acquisition agreement, Orbital will make an investment of approximately $1.6 million to assume BAFS’s working capital (excluding debtors and creditors) including a small component of goodwill. Subject to satisfaction of all conditions precedent transfer of the business is expected to occur prior to June 30th, 2008.
BAFS is based in Sydney and currently generates approximately $6 million in revenue each year.