Clean Diesel Technologies Inc. will shut its Bridgeport operation following its $5 million merger with a California maker of auto emissions systems, regulatory filings show.
Clean Diesel and Catalytic Systems Inc. announced in May plans to merge their operations as part of a $5 million stock swap that would give CSI a 60 percent stake in Clean Diesel. Clean Diesel stockholders would own the rest.
However, there was no mention at the time about whether the maker of emissions systems for diesel trucks and off-road equipment would remain in Bridgeport, where it has operated for at least the past decade.
CSI did not immediately return a phone call seeking comment.
In a filing with the Securities and Exchange Commission, CSI says Clean Diesel CEO Michael Asmussen signed a new contract to become a CSI vice president, drawing a $330,000 yearly base salary and entitled to a minimum $165,000 bonus the first year with his new employer, the filing said.
Asmussen also will receive 40,000 restricted shares of CSI stock. CSI also agreed to provide unspecified relocation benefits to Asmussen, who is moving to be nearer to CSI’s southern California operations.
Asmussen did not immediately return a phone call Wednesday seeking comment.
Separately, CSI also disclosed an agreement to pay Charles Grinnell, Clean Diesel’s vice president and general counsel, an $86,000 “transition bonus” if he’s on the payroll at least six months following the merger or at the time the Bridgeport office closes, the filing shows.
Filings indicate the closing for the deal, originally targeted for June 30, is now set for around early September.
Clean Diesel has struggled in recent years to revise its business model from producing turnkey systems for scrubbing particles and noxious gases from diesel exhaust to turning out parts and components.
It 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.
