NAT GAS

Fuel Systems Solutions Inc. (NASDAQ: FSYS) has acquired the compressor business and the right to use certain trademarks from Dresser Italia S.r.l. in an all-cash transaction. The purchase price was not disclosed.

Fuel Systems, along with competitors Clean Energy Fuels Inc. (NASDAQ: CLNE) and Westport Innovations Inc. (NASDAQ: WPRT), are driving growth in the use of natural gas in the transportation business. Natural gas producer Chesapeake Energy Corp. (NYSE: CHK) has started a $1 billion venture fund to promote natural gas as an alternative to petroleum-based transportation fuels, and Clean Energy was among the first beneficiaries of that fund.

Fuel Systems, with a market cap of around $550 million, is the smallest of the three and is trying to beef up its offerings to stay in the game. And it may be doing better than that.

The Dresser purchase includes compressed natural gas (CNG) compressor equipment, the acquisition of the CUBOGAS trademark, and a license to use the Dresser name on equipment now to be manufactured by Fuel Systems.

In the past 12 months, Westport’s share price has more than doubled, Clean Energy’s share price has risen 40%, and Fuel Systems’ price has fallen -1.2%. The story is somewhat different since the beginning of 2012. Fuel Systems’ share price has jumped 60% since January 1st, compared with rises of about 37% at both of its competitors.