Clean Energy Fuels Buys BAF Technologies

SEAL BEACH, Calif. (AP) — Clean Energy Fuels Corp., which provides natural gas for transportation vehicles, said Thursday it is buying natural gas vehicle systems company BAF Technologies Inc. for around $8.3 million.

About $3.8 million of BAF's outstanding debt is held by Clean Energy Finance, a unit of Clean Energy — which will pay $4.5 million in cash to acquire BAF at the closing.

Part of the purchase price will be used to pay down BAF's outstanding debt.

BAF shareholders may earn a percentage of the future gross profit earned by the acquired company as additional consideration, provided Dallas-based BAF achieves profit targets in fiscal 2010 and 2011.

"We believe that automakers will ultimately produce natural gas vehicles for the U.S. market. When they do, BAF's technology may aid the automakers for future (natural gas vehicles) that are produced on a factory line," Clean Energy CEO Andrew J. Littlefair said in a statement.

Shares of Clean Energy declined 43 cents, or 3.1 percent, to $13.55.