Nel ASA has announced that it has entered into a non-binding term sheet to acquire hydrogen technology company Proton Energy Systems Inc., for an enterprise value of US$70 million.
Norway-headed hydrogen value chain solution provider Nel ASA has announced that it has entered into a non-binding term sheet to acquire the Connecticut US-based hydrogen technology company Proton Energy Systems Inc (Proton OnSite)., for an enterprise value of US$70 million. The company had revenues of US$ 27 million in 2016.
Incorporated in 1996, Proton OnSite has been developed into the largest manufacturer of on-site hydrogen generators with over 2 600 units installed in more than 75 countries. The deal would create the world’s largest hydrogen electrolyser company with a global footprint.
– We are proud to announce the intention to combine Nel and Proton OnSite, creating the world’s largest hydrogen electrolyser company. Proton OnSite is a major provider of PEM electrolysis systems and fully complements Nel both in terms of technology and market outreach. The combined entity will be able to offer the full spectre of electrolysers in terms of capacity and technology. This will give Nel a strong foothold in the U.S. and other markets beyond our current position. Proton OnSite also has a very motivated and talented organization, and a solid backlog going into 2017, said Jon André Løkke, Chief Executive Officer of Nel in a statement.
The company offers Proton Exchange Membrane (PEM) electrolysis systems to various markets, focusing on small to medium sized plants.
– Proton OnSite and Nel is a strong strategic fit, with synergies related to sales and commercialisation, product portfolio, R&D and best practices across the combined company. We expect a solid demand also for PEM electrolysers going forward and will by this acquisition be able to fully complement our product portfolio. Nel will be a one-stop-shop completely independent of your technology preference and our combined sales teams will be a global force to recon with, said Løkke.
The term sheet between Nel and Proton OnSite’s shareholders is non-binding, and the contemplated acquisition will be subject to the successful negotiation of a mutually agreed share purchase agreement. The transaction is expected to be concluded in the second quarter of 2017 and will be subject to ordinary closing conditions to be agreed, including the receipt of any public approvals required.
– We look forward to joining forces with Nel, creating the leading hydrogen electrolyser company globally. We see strong strategic benefits from combining our technological footprint, and think we can accelerate our combined growth and benefit from all the exciting opportunities we see ahead of us. There is a strong cultural fit combining our two organizations, and we are excited to continue on this journey with Jon and his team, said Robert Friedland, President & Chief Executive Officer of Proton OnSite.