This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ballard Sells U.S. Material Products Division

  • Sale of non-core asset for up to $12M fortifies balance sheet

VANCOUVER, Jan. 31, 2013 /PRNewswire/ - Ballard Power Systems (NASDAQ: BLDP) (TSX: BLD) has announced the closing of an agreement to sell the Company's Material Products division, located in Lowell, MA for up to $12 million. Of this amount, $10.5 million was paid to Ballard in cash on closing, with the remainder payable on the basis of 2013 financial results associated with the Material Products division.

Substantially all the assets of the Material Products division were purchased by investment group ALY Holdings LLC in partnership with the division's senior management, through AvCarb LLC, a new company formed as a result of the transaction.

Tony Guglielmin, Ballard's CFO said, "The Material Products division is a non-core asset, with the majority of its sales generated in industrial sectors, not related to fuel cells. This asset sale benefits Ballard by fortifying our balance sheet with additional cash reserves. We believe this transaction represents the best outcome in terms of sale proceeds and continuity of supply, with no shareholder dilution. As well, the sale enables a singular focus on our higher growth fuel cell product markets."

Ballard's fuel cell product revenue has experienced significant growth in recent years, led by applications in telecom backup power and material handling. Sales in these markets have led to a 30% annual revenue growth rate over the past 3-year period for the Company's fuel cell products.

Roger Masse, President of AvCarb LLC said, "We are excited by the opportunity this transaction creates for our company and our employees. We will focus on serving our customers' evolving needs for engineered carbon materials, while continuing to support fuel cell customers, including Ballard, with advanced GDL material. The experience and philosophy of the ALY Holdings team is also a great fit with our management group and with the business."

In addition to the manufacture of carbon friction materials for various industrial applications, AvCarb LLC also manufactures gas diffusion layer (GDL) material used in the production of hydrogen fuel cells. Under a supply agreement, AvCarb LLC will continue to make GDL material available to Ballard for use in the Company's fuel cell products.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,630.27 +189.68 1.09%
S&P 500 2,093.25 +25.61 1.24%
NASDAQ 5,089.2060 +49.43 0.98%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs