WOOD DALE, Ill., March 06, 2018 (GLOBE NEWSWIRE) -- Power Solutions International, Inc. (“PSI" or “the Company”) (OTC Pink:PSIX), a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems, today announced that it has signed an asset purchase agreement to acquire the Chicago Technical Center research and development facility from Ricardo, Inc. Ricardo, Inc. is a subsidiary of the global strategic engineering and environmental consultancy, Ricardo plc. PSI will acquire the assets and assume the lease of the 22,400-square-foot R&D facility located in Burr Ridge, IL, and will extend employment to certain key personnel. The transaction, which is expected to be completed on April 2, 2018, is subject to various conditions, including third party consent. Terms of the deal were not disclosed.
According to PSI management, the advanced R&D facility provides three strategic benefits that will immediately provide positive impact for the Company’s on-road, stationary and mobile industrial engine programs: increased speed to market response; greater ability to innovate and optimize product performance and reliability; and lower cost of product development through direct control of in-house EPA and CARB-certified testing cell operations, scheduling, and management of the industry-leading engine testing center.
“We are excited to expand and strengthen our development and testing capabilities, while also increasing our capacity,” said John Miller, PSI’s Chief Executive Officer. “This facility will enable us to respond more quickly, efficiently and cost-effectively to new opportunities as we continue to develop and enhance products to meet evolving market demands and fuel sources.”
According to Mr. Miller, the Chicago Technical Center has the capacity to meet PSI’s current and future engine development, certification and durability testing needs. The facility includes four dynamometer engine test cells with U.S. EPA 1065 capability, covering a range of areas including emission, performance, durability, altitude, and fuel blending testing. “The testing center puts us in a much stronger position to meet our goals, at a fraction of the cost of building a comparable R&D and testing facility,” said Miller.
This purchase will strengthen PSI’s and Ricardo’s strategic technology relationship that supports many of the new areas of PSI’s expansion. Ricardo has a longstanding global reputation for advanced engine development and concepts, most recently focusing on hybrid, electrification and autonomous vehicle controls. “PSI has an advanced engineering team that we have cooperated with over the years, and this new relationship will provide great value to both companies,” said Michael Paul Rivera, President of Ricardo.
For more information on PSI, visit http://www.psiengines.com.
About Power Solutions International, Inc.
Power Solutions International, Inc. (PSI) is a leader in the design, engineering and manufacture of emissions-certified, alternative-fuel power systems. PSI provides integrated turnkey solutions to leading global original equipment manufacturers in the industrial and on-road markets. The company's unique in-house design, prototyping, engineering and testing capacities allows PSI to customize clean, high-performance engines that run on a wide variety of fuels, including natural gas, propane, biogas, gasoline and diesel.
PSI develops and delivers powertrains purpose-built for Class 3 through Class 7 medium-duty trucks and buses for the North American and Asian markets, including work trucks, school and transit buses, terminal tractors, and various other vocational vehicles. In addition, PSI develops and delivers complete industrial power systems that are used worldwide in stationary and mobile power generation applications supporting standby, prime, distributed generation, demand response, and co-generation power (CHP) applications; and mobile industrial applications that include forklifts, aerial lifts, industrial sweepers, aircraft ground support, arbor, agricultural and construction equipment.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the current expectations of the Company about its prospects and opportunities. These forward-looking statements are covered by the "Safe Harbor for Forward-Looking Statements" provided by the Private Securities Litigation Reform Act of 1995. The Company has tried to identify these forward-looking statements by using words such as "expect," "contemplate," "anticipate," "estimate," "plan," "will," "would," "should," "forecast," "budgeted," "believe," "outlook," "guidance," "projection," "target" or similar expressions, but these words are not the exclusive means for identifying such statements. The Company cautions that a number of risks, uncertainties and other factors could cause the Company's actual results to differ materially from those expressed in, or implied by, the forward-looking statements, including, without limitation: the final results of the Audit Committee's independent review as it impacts the Company's accounting, accounting policies and internal control over financial reporting; management's ability to successfully implement the Audit Committee's remedial recommendations; the reasons giving rise to the resignation of the Company's prior independent registered public accounting firm; the time and effort required to complete the restatement of the affected financial statements, complete its delinquent financial statements and amend or prepare the related Form 10-K and Form 10-Q filings; the subsequent discovery of additional adjustments to the Company's previously issued financial statements; the timing of completion of necessary re-audits, interim reviews and audits by the new independent registered public accounting firm; the timing of completion of steps to address and the inability to address and remedy, material weaknesses; the identification of additional material weaknesses or significant deficiencies; variances in non-recurring expenses; risks relating to the substantial costs and diversion of personnel's attention and resources deployed to address the financial reporting and internal control matters and related class action litigation; the ability of the Company to accurately budget for and forecast product shipments, the extent to which product shipments result in recorded revenues; the impact of the resignation of the Company's former independent registered public accounting firm on the Company's relationship with its lender and trade creditors and the potential for defaults and exercise of creditor remedies; the impact of the previously disclosed investigation initiated by the SEC and any related or additional governmental investigative or enforcement proceedings; the impact of recent resignations of the Company's directors and certain executive officers and any delays and challenges encountered in recruiting replacements for open positions and the replacements' transitions into their positions; and any negative impacts from delisting of the Company's common stock from Nasdaq and any delays and challenges in obtaining a re-listing on a stock exchange. Actual events or results may differ materially from the Company's expectations. The Company's forward-looking statements are presented as of the date hereof. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Power Solutions International, Inc.
Jeremy Lessaris
VP of Global Marketing & Communications
+1 (630) 350-9400
jlessaris@psiengines.com
Power Solutions International, Inc.
Philip Kranz
Director of Investor Relations
+1 (630) 451-5402
Philip.Kranz@psiengines.com