Power Solutions International (PSIX) has announced a strategic investment and collaboration agreement with a China-based global diesel engine designer, Weichai America Corporation.
Weichai America will invest $60 million in PSI through a combination of newly issued common equity and preferred shares. Through this alliance, PSI said it will gain access to Weichai’s international manufacturing facilities and supply chain network.
The two companies have also agreed to a collaboration arrangement to fast-track market penetration opportunities for each of the company’s product lines across various global markets. This will include offering end-user segments.
As part of the agreement, Weichai America will purchase 2,728,752 newly issued shares of Common Stock of PSI at
“Our strategic investment into PSI will further enhance Weichai’s globalization strategy and brand recognition by strengthening our presence in the key North American markets," said Shaojun Sun, executive president of Weichai. "Our collaboration with PSI will create synergies particularly in the areas of product manufacturing, sales and marketing and cost reduction by leveraging the experience, expertise and resources of Weichai and PSI, and will lay a solid foundation for PSI’s future growth in the Chinese and other new markets."
PSI will in turn use the $60 million investment to refinance the company’s debt structure and support its long-term growth objectives.
In addition, PSI and Weichai will establish a steering committee of three top-level executives from each company, who will oversee the implementation of the collaboration.
The closing is set to occur no later than April 4, 2017.
The collaboration comes as a delight for PSI after the company’s stock price plummeted by more than 100 percent last month in February, following the launch of an internal investigation and the subsequent resignations of RSM US, LLP, the company's former accountant firm, and Michael Lewis, PSI’s chief financial officer.
Succeeding RSM US LLP, PSI appointed Frazier & Deeter as the new accounting firm to re-audit the past three years’ worth of financial reporting after the initial uncovering of revenue errors.
- SafeStop School Bus App Reports Another Year of Growth
- Introducing the IC Bus, Gasoline Powered CE Series
- Zonar and the NAPT Showcase Commitment to Pupil Safety with the 2018 Don Carnahan Grant
- Legal Advice Given at TSD Conference on Avoiding Legal Minefields
- #TSD2018 Mardi Gras Trade Show Sneak Peek
Latest from Gabriela Mungarro
- Tiny Smart Earbud Provides Life Saving Alerts
- ADOMANI Makes Further Progress to Become First to List on NASDAQ through Equity Crowdfunding
- Cummins Guidanz Mobile App Improves Customer Uptime
- Wheelchair Mobility: How Far Has It Progressed?
- Blue Bird to Offer School Buses with Allison Transmission's FuelSense 2.0