CHEM buys Ballard’s methanol Telecom Backup Power business for US$6.1 million

Ballard Power Systems announced on May 31 that it has sold its methanol Telecom Backup Power business assets to one of its long-time partners, a major Taiwanese power equipment company, Chung-Hsin Electric & Machinery Manufacturing Corporation (CHEM).

As disclosed in the Company’s May 17 press release, CHEM will pay up to US$6.1 million, including US$3 million which was paid today on closing, and an additional earnout of up to US$3.1 million based on certain sales objectives during an 18-month earnout period. In addition to the purchase price of up to US$6.1 million, CHEM has also agreed to purchase fuel cell stacks from Ballard over the earnout period, with a minimum spend of US$2 million.

Also according to their previous press release, CHEM will receive assets related to the methanol Telecom Backup Power line of business – including intellectual property rights and physical assets such as inventory and related product brands – and will also take on a number of Ballard engineering, sales and service employees involved in this business on closing of the sale transaction.

CHEM has been involved in the Telecom Backup Power market since 2008 and has been a Ballard customer since 2012.