ASX-listed PPK Group Limited has begun a series of conditional transactions to acquire a material interest in Australia-based privately owned lithium battery manufacturer PowerPlus Energy.
PowerPlus Energy supplies reliable, long-lasting modular battery storage solutions for on-grid and off-grid homes and businesses.
Established in 2017, Victoria-based Power Plus Energy handles onshore manufacturing of lithium ferro phosphate stationary storage batteries for a network of 300 distributors and installers predominantly located in Victoria, New South Wales, Queensland, and Western Australia.
The acquisition is in line with PPK’s key business, commercial, and operational strategies and aligns with the company’s other investments, such as in LI-S Energy, PPK said in an ASX announcement.
The acquisition is also aligned with the company’s objectives of investing in, and commercialising opportunities in the technology sector and participating in the clean energy revolution.
“PowerPlus Energy has an established reputation and production capabilities with a new, expanded facility ready for growth and an innovative market offering. Given the adjacent expertise and roadmap at our Li-S Energy investment, we expect collaboration opportunities with Li-S Energy in the future,” said PPK Chairman Robin Levison.
If conditions in the transactions are met, PPK will initially pay $1.8 million to acquire a 33 per cent interest in PowerPlus Energy under a share purchase agreement. This includes a clear fixed price pathway to increase the interest to 75 per cent within two years for an additional $2.8 million.
PPK will also settle $1 million in advance to accelerate PowerPlus Energy’s manufacturing capability to support the company’s growth plans.
“We are excited by the opportunity for PowerPlus Energy to join the PPK Group of companies, which will help drive growth pathways in our business. This growth will also provide upside opportunities to our Australian suppliers, both to grow their businesses and innovate with us,” said Bradley Paton, founder of PowerPlus Energy.
“The opportunity to enhance our knowledge across the battery ecosystem, especially with Li-S Energy Limited being in such close geographical proximity at Waurn Ponds in Geelong, will also bring new knowledge-sharing and growth development opportunities for our staff,” Paton added.
