Clean Diesel Technologies Inc. in Bridgeport has agreed to merge with a California maker of auto emissions control systems.
As part of the merger with Catalytic Solutions Inc. of Ventura, Calif., Clean Diesel will swap stock worth more than $5 million that give Catalytic Solutions a 60 percent stake in Clean Diesel, according to a regulatory filing. Clean Diesel’s current stockholders will own the rest.
Clean Diesel has struggled to revise its business model from producing turnkey systems for scrubbing particles and noxious gases from diesel exhaust to turning out parts and components.
But for its efforts the company suffered a $1.3 million loss in the 2009 fourth quarter on its way to losing $6.7 million for the year, as restructuring costs took a toll on the emissions-equipment maker’s balance sheet.
Revenues totaled $1.2 million in 2009, down from $7.5 million in 2008.
Both parties agreed to pay the other a $300,000 breakup fee if one side pulls out of the merger due to close on June 30.
