Revision Military, a private US company based in Vermont, is buying the division for up to $16.0 million in cash, combining the technology with its electronics and power division in Ottawa, Canada. Ballard initially receives $4.75m with a further $11.25 based on achievement of specific sales objectives in the next 12 months. It retains certain assets related to fuel cell propulsion systems for military and commercial unmanned vehicles.
“This divestiture is consistent with our strategy of continuous portfolio optimization," said Randy MacEwen, Ballard President and CEO. "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 US 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 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,” he said.
“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," said Jonathan Blanshay, CEO of Revision Military.
Ballard paid over $17.5m for Protonex in 2015, which included the Power Manager business, a Solid Oxide Fuel Cells business which was divested in January 2018, and an unmanned vehicle business that it retains.