Quantum Fuel Systems Technologies, an industry leader in CNG fuel systems for the automotive and heavy duty industry, has been acquired by Douglas Acquisitions LLC. The transaction, initiated in April of this year, was just finalised.
Effective immediately, the acquired company will be known as Quantum Fuel Systems LLC, a company wholly owned by Douglas, a family-owned US$1 billion private equity firm based in Northern California. Going forward, Quantum will continue to provide its industry leading CNG technology while being financially positioned to continue to grow its business operations. According to a Quantum spokesperson, immediate enhancements are expected in customer service, support and product offerings.
Since 2013, Quantum (based in Lake Forest, CA) has seen rapid growth, earning a market share in excess of 40% for over the road CNG heavy duty vehicles in North America. This was accomplished through a portfolio of CNG storage system products that includes Q-Cab™ ‘back of cab’ storage modules and the Q-Rail™ storage modules that are installed horizontally on the rails of heavy duty trucks. These product lines are extremely weight efficient and provide the highest storage capacity available in the industry.
Quantum is also commercialising its innovative virtual pipeline trailer (available in 500 000 and 650 000 ft3 of storage), a high capacity transport trailer that optimises the logistical efficiency of transporting CNG (and other gaseous fuels) by utilising its proprietary Q-Lite™ CNG storage tanks at 5000 PSI. The virtual pipeline trailer will debut later this year.
The Quantum acquisition expands Douglas' portfolio of automotive investments. Since 1976, Douglas has owned KSR International, Inc., an industry leader in the design, engineering and manufacture of an array of products for the transportation industry (autos, light trucks, ATVs), including automotive sensors, electronic throttle controls, adjustable and fixed pedals, electric steering control units and power modules. KSR has annual revenues of US$300 million.
In 2015, Douglas provided funding for KSR, based in Ridgetown, ON, to acquire a UK-based manufacturer of electronic power modules for the automotive industry. That acquisition was merged into KSR to streamline marketing, sales and product development while enhancing KSR's ‘go to market’ strategy for its customers that include OEMs and Tier One automotive suppliers globally.
In 2014, Douglas authorised KSR's formation of a consortium that launched Alternative Fuel Containers, LLC. AFC's goal is to develop natural gas storage tanks to minimise refueling time and maximise miles driven per tank. The AFC tank design is based on using MOF (metal organic framework) adsorbent to capture natural gas at the molecular level.
Adapted from press release by Francesca Brindle
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