UPDATE 1-Clean Energy to buy privately held IMW Industries

Tue Jul 6, 2010 7:07am EDT

* Deal for $125 mln in cash, stock

* IMW shareholders may also receive a pct of gross profit

* IMW to become a unit of Clean Energy

July 6 (Reuters) - Natural gas provider Clean Energy Fuels Corp (CLNE.O) said it will buy privately held IMW Industries Ltd, a supplier of compressed natural gas equipment, for about $125 million in cash and stock to expand its operations in emerging international markets.

IMW, which makes and services advanced natural gas fueling compressors and related equipment, will receive $75 million -- $15 million in cash and about $60 million in Clean Energy common stock -- and four additional annual payments of $12.5 million each in cash and stock, Clean Energy said.

Seal Beach, California-based Clean Energy said it will pay IMW shareholders up to $40 million over the next four years, if gross profit exceeds certain criterion.

British Columbia-based IMW, which also has a manufacturing facility near Shanghai, China, focuses on growing markets in China, Southeast Asia and South America.

It will maintain separate operations as a unit of Clean Energy after the closing of the deal, which is expected in the third quarter.

Shares of Clean Energy closed at $14.47 Friday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anne Pallivathuckal)

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