Queensland commercialisation company PPK Group has entered into a series of conditional transactions to acquire a significant stake in Victoria-headquartered lithium battery manufacturer PowerPlus Energy as it looks to build its presence in the energy storage sector.
Established in 2017, PowerPlus specialises in supplying modular lithium ferro phosphate (LFP) battery storage solutions for on-grid and off-grid installations. The company operates out of facilities at Scoresby in Melbourne’s east, where it already employs more than 80 people.
PowerPlus founder and Chief Executive Officer Bradley Paton said the PPK transaction would help drive growth pathways for the company.
“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,” he said.
“This growth will also provide upside opportunities to our Australian suppliers, both to grow their businesses and innovate with us.”
PPK Chairman Robin Levison said the acquisition of PowerPlus complements the group’s business, commercial and operational strategies, and is synergistic with its other investments, including in Geelong-based battery manufacturer Li-S Energy which is developing a lightweight lithium-sulphur battery.
“PPK has been assessing a variety of opportunities in the energy market as we believe the world continues to shift towards renewable energy, and that energy storage will play a crucial role in ensuring a reliable and efficient energy system,” he said.
“We see the PowerPlus Energy acquisition as a key step in supporting this shift.”
Image: PowerPlus Energy
Brisbane-based PPK will initially pay $1.8 million to acquire a 33% interest under a share purchase agreement, with a plan to increase its holding in PowerPlus to as high as 75% within two years for an additional $2.8 million. PPK will also get two seats on the PowerPlus board.
If the conditions of the acquisition are met, PPK will also repay an existing loan for $2.9 million owed by PowerPlus Energy to a continuing shareholder.
The group also plans to advance $1 million to PowerPlus to accelerate its manufacturing capability.
Paton said the association with PPK will deliver significant manufacturing, business growth and battery sector expertise, providing “an opportunity to enhance our knowledge across the battery ecosystem.”
“Especially with Li-S Energy being in such close geographical proximity at Waurn Ponds in Geelong,” he said.
PPK said the transactions are subject to customary conditions, including satisfaction of final due diligence by the board. It is currently anticipated that the first transaction will complete before the end of the financial year.
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