PSI closes on Weichai share agreement
WOOD DALE - Power Solutions International said it has closed on the share purchase agreement with Weichai America Corp., a fully owned subsidiary company of Weichai Power Co.
Under the terms of the agreement announced last month, Weichai America is investing $60 million in PSI through a combination of newly issued common equity and preferred shares. The two companies also entered into a strategic collaboration agreement under which they will work together to accelerate market opportunities for each company's respective product lines across various geographic and end user segments.
PSI's board of directors has been increased to seven members with the appointment of Shaojun Sun and Jiang Kui, two individuals designated by Weichai America, as directors. Sun was also named chairman of the board of directors, succeeding Gary Winemaster who has relinquished the role.
Sun, 51, is an executive director and executive president of Weichai Power Co., Ltd. He joined Weifang Diesel Engine Factory in 1988 and has held the positions of supervisor of the engineering department, the chief engineer of Weifang Diesel Engine Factory, and director of Torch Automobile Group Co., Ltd. Sun is currently a director of Weichai Group Holdings Limited and Weichai Heavy-duty Machinery Co., Ltd. He is a researcher-grade senior engineer and holds a doctoral degree in engineering. He was appointed as Taishan Mountain scholar specialist by Shandong People's Government.
Kui, 53, was appointed as a nonexecutive director of Weichai Power Co., Ltd. in 2012. He has held various positions including engineer and deputy general manager of Assembly Department of Shandong Bulldozer General Factory, deputy general manager of Shantui Import and Export Company, deputy director, director of manufacturing department, deputy general manager and director of Shantui Engineering Machinery Co., Ltd., deputy general manager of Shandong Engineering Machinery Group Co., Ltd., executive deputy general manager and vice chairman of Weichai Group Holdings Limited, chairman of Shanzhong Jianji Co., Ltd. and director of Shandong Heavy Industry Group Co., Ltd. He is now the president of Shandong Heavy Industry Group Co., Ltd. He is a senior engineer and holds an MBA degree.
The company used its $60 million of Weichai equity investment proceeds combined with borrowings on its amended $65 million asset-based revolving credit facility with Wells Fargo Bank, NA, to retire and satisfy a $60 million term loan with a lender.