- Deal valued at up to $16
million
- Ballard retains certain fuel cell assets related to unmanned
vehicle applications
VANCOUVER and SOUTHBOROUGH, MA, Aug.
31, 2018 /CNW/ - Ballard Power Systems (NASDAQ: BLDP; TSX:
BLDP) today announced that it has entered into a definitive
agreement to divest certain non-core assets of its subsidiary,
Protonex, related to the Power Manager business to Revision
Military Ltd. (www.revisionmilitary.com), a private U.S.-based
company, for up to $16.0 million in
cash. Ballard will retain certain assets related to fuel cell
propulsion systems for military and commercial unmanned
vehicles.
Terms of the transaction include upfront consideration of
$4.75 million to Ballard – payable in
cash and note – subject to a customary working capital adjustment,
and up to a further $11.25 million,
based on achievement of specific sales objectives during a 12-month
earn-out period. The transaction is expected to close within the
next 60 days, subject to customary closing conditions.
Randy MacEwen, Ballard President and CEO said, "This
divestiture is consistent with our strategy of continuous portfolio
optimization. We decided to divest Protonex assets that are no
longer aligned with Ballard's strategic fuel cell focus, while
retaining assets related to the unmanned vehicle market, under the
Ballard brand. The divestiture reduces complexity while adding fuel
for us to invest in our core fuel cell business."
Mr. MacEwen continued, "We originally acquired Protonex to
provide strategic diversification and to engage the U.S. military
complex as a potential customer for portable fuel cell products.
With the developing value proposition and attractive market
opportunities for fuel cell electric vehicles or FCEVs in Heavy-
and Medium-Duty Motive markets, including bus, truck, rail, marine
and other applications, we are divesting the Power Manager business
to focus on core fuel cell market opportunities. The Power Manager
business is a good long-term business that better complements the
Revision
strategy."
Jonathan Blanshay, CEO of
Revision Military commented, "Revision is in the business of
developing and supplying leading-edge protective equipment, along
with innovations in power management and integrated systems, for
mission critical military and tactical use. We are confident that
our corporate platform, along with planned increases in U.S.
defense spending and achievement of Milestone C, create a
compelling growth opportunity for the Protonex Power Manager
business."
In 2015 Ballard paid approximately $17.5
million in shares and cash to acquire Protonex, which
included the Power Manager business, a Solid Oxide Fuel Cells
business which was divested in January
2018, and the unmanned vehicle business.
For additional information regarding unmanned vehicles, please
visit http://www.ballard.com/markets/uav.
About Ballard Power Systems
Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) provides clean energy products that
reduce customer costs and risks, and helps customers solve
difficult technical and business challenges in power and energy. To
learn more about Ballard, please visit www.ballard.com.
This release contains forward-looking statements concerning
future events or developments, anticipated product performance,
customer benefits and market demand for our products. These
forward-looking statements reflect Ballard's current expectations
as contemplated under section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any such forward-looking statements are based on Ballard's
assumptions relating to its financial forecasts and expectations
regarding its product development efforts, manufacturing capacity,
and market demand.
These statements involve risks and uncertainties that may cause
Ballard's actual results to be materially different, including
general economic and regulatory changes, detrimental reliance on
third parties, successfully achieving our business plans and
achieving and sustaining profitability. For a detailed discussion
of these and other risk factors that could affect Ballard's future
performance, please refer to Ballard's most recent Annual
Information Form. Readers should not place undue reliance on
Ballard's forward-looking statements and Ballard assumes no
obligation to update or release any revisions to these forward
looking statements, other than as required under applicable
legislation.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities. The Ballard
Common Shares have not been registered under the United States
Securities Act of 1933, as amended, or the securities laws of any
other jurisdiction and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
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SOURCE Ballard Power Systems Inc.