$20 Million for Mansfield Gas Equipment Systems Corp
Clean Energy Fuels and Mansfield Energy – an oil jobber that branched into compressed natural gas with the purchase of Southern California’s GESI/Gas Equipment Systems, Inc. in March 2011 – report an agreement for Clean Energy to acquire Mansfield’s compressed natural gas fueling portfolio.
The transaction is valued at approximately $20 million, as a combination of cash and shares. It is “designed to leverage Mansfield’s and Clean Energy’s sprawling North American real estate footprint.”
Sales teams from both companies will offer Clean Energy’s natural gas fueling station construction and operational services, “supported by Mansfield’s large-scale fuel supply capabilities, and Gas-2-Gallons fuel management system creating a superior solution for the growing number of fleets making the switch to cleaner, cheaper natural gas.”
Put another way, the pact assures a supply of conventional petroleum fuels, via Mansfield Energy, for customers at Clean Energy Fuels (NASDAQ:CLNE) natural gas stations. And it brings needed back-end credit card acceptance and payment capability to Clean Energy.
The deal covers 43 Mansfield service and operations contracts for CNG and 20 new CNG stations under development. They now join 348 CNG and LNG outlets operated by Clean Energy.
‘We Will Be the Best Solution’
“This agreement joins two leaders of fleet fueling into strategic partners that will provide the highest level of service and best value for customers in the rapidly-growing natural gas fuel market,” Clean Energy president and CEO Andrew Littlefair said in a release.
“No other company offers fuel customers the benefit of scale and expertise that Mansfield provides,” Littlefair said. “Clean Energy has built and operated more CNG stations and fueled more natural gas vehicles than any company in the U.S. Together, we will be the best solution in the marketplace.”
“We want our customers to have the best solution possible for fueling with natural gas,” Mansfield CEO Michael Mansfield said in the announcement.
Don’t Forget the Phill
“We bring scale in commodity supply, risk management, and transaction processing,” Mansfield said. “Clean Energy has scale in design, engineering and operations. Bringing these strengths together for our customers provides the benefits of proven technology coupled with large scale operating efficiencies to provide the best value and simplest path to natural gas adoption in the market today.”
Clean Energy also becomes the Western distributor of the BRC FuelMaker Phill home CNG fueling unit.
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Source: Clean Energy Fuels with Fleets & Fuels follow-up