California-based Fuel Systems Solutions, has informed that its Italian operating subsidiary, MTM S. r. L., has entered into an agreement to acquire Distribuidora Shopping S. A. (DS), a privately held manufacturer of components and systems for the compressed natural gas (CNG) vehicle market.

However, DS will continue to sell its products under the well-known Tomasetto Achille brand. The company has achieved consolidated revenue of $33 million for its fiscal year ending April 30, 2008.

An official source revealed that the transaction value of $22 million is subject to adjustment for any closing indebtedness and the selling shareholders will receive $10.0 million of Fuel Systems common stock as part of the purchase consideration.

Fuel Systems Solutions, Inc. through its U. S. and foreign subsidiaries, engages in the design, manufacture, and supply of alternative fuel components and systems for use in the transportation, industrial, and power generation industries.

The acquisition, which is subject to customary closing conditions, is expected to close in January 2009.

Fuel Systems shares touched a high of $34.68 on the Nasdaq after the news. It ended the day at $31.24, down $2.57 or over the previous close.