Hydrogenics Acquires Greenlight Power Technologies

January 07, 2003 by Jeff Shepard

Hydrogenics Corp. (Mississauga. ON), a designer and manufacturer of fuel cell technology, announced that it has acquired Greenlight Power Technologies Inc. (Burnaby, BC) in a transaction valued at approximately $19 million. The acquisition will enable Hydrogenics to consolidate its industry-leading position in the fuel cell testing business, while creating additional capacity and aligning dedicated resources to its fast growing fuel cell power products business.

The acquisition combines the number one and number two providers of fuel cell test equipment and testing services and virtually doubles the size of Hydrogenics' test business. Under the terms of the transaction, Greenlight shareholders will receive cash consideration of approximately $2.25 million and 4,328,018 Hydrogenics' common shares, representing approximately eight percent of Hydrogenics outstanding common shares.

"This acquisition is all about growth," said Hydrogenics President and CEO Pierre Rivard. "Not growth for the sake of growth, but rather capitalizing on an opportunity to grow our company in a commercially sustainable manner. In addition to acquiring new talent, we anticipate growth in a number of other key areas including customer base, revenues and global presence. The current strength that we now see in the fuel cell sector indicates that the time is right for this strategic move. We are excited to start the new year with the additional resources and capacity to execute our strategic growth plan and meet the growing demands for fuel cell test equipment and power products. In short, we expect that this acquisition will accelerate our goal to become the first profitable fuel cell company."