Clean Energy Fuels Corp. has signed an agreement to acquire IMW Industries for $125 million plus a cash earn-out arrangement.
IMW manufactures and services advanced natural gas fueling compressors and related equipment that is sold to station operators and commercial fleets.

IMW has provided more than 1,000 installations in over 20 countries. The company is headquartered near Vancouver, British Columbia, and has a second manufacturing facility near Shanghai, China.

The purchase price includes $75 million to be paid at closing and four annual payments of $12.5 million each. The earn-out arrangement will pay IMW's shareholders certain percentages of future gross profits earned by IMW over the next four years assuming the gross profit exceeds certain minimum thresholds. The companies intend to close the transaction in the third quarter of 2010. After closing, IMW will operate separately as a subsidiary of Clean Energy.

"This acquisition transforms Clean Energy both in terms of capability and geographic reach," said Andrew J. Littlefair, Clean Energy president and CEO. "In the U.S. market, we now can provide integrated, advanced compression technology and station-building for our customers, adding value to our service package and broadening our attraction as a one-stop fueling provider. Our core business of providing fueling services in North America is now integrated with domestic NGV vehicle conversions (from our BAF vehicle technology subsidiary), domestic biomethane production (from our landfill gas asset in Dallas, Texas), and with this acquisition we have significant sales, manufacturing and service operations worldwide."

Clean Energy has deployed IMW compressors and related equipment for several years in many of its 200 stations across the U.S.