Ballard Power Systems said it has entered into a definitive agreement to divest certain non-core assets of its subsidiary, Protonex, related to its Power Manager business to Revision Military Ltd., 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. The transaction is expected to close within the next 60 days, subject to customary closing conditions.
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.
Ballard President and CEO Randy MacEwen, 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.
“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,” MacEwen said. “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.”