VivoPower International PLC Announces Strategic Reorganization and Divestiture of Non-Core Business Units
June 29 2022 - 9:00AM
VivoPower International PLC (NASDAQ: VVPR, the “Company”) is
pleased to announce the sale of two non-core business units in
Australia, J.A. Martin Electrical (“JAM Electrical”) and NDT
Services (“NDT”), to ARA Group Limited (“ARA”), a leading
diversified industrial services group based in Australia. This is
in line with VivoPower’s strategy to focus on its core electric
vehicle, renewable critical power and sustainable energy solutions
businesses.
VivoPower will receive upfront consideration as well as an
earnout based on FY2023 EBITDA results for the businesses
(including the value of synergies) which could total up to A$10m
(subject to actual FY2023 EBITDA results). VivoPower was advised on
this transaction by STS Capital Partners in Singapore. The sale is
expected to be completed and settled on July 1, 2022.
VivoPower is retaining its growing J.A. Martin’s Solar (“JAM
Solar”) business, which will become a new division of its existing
Australian business arm, Kenshaw (part of the wholly owned Aevitas
group in Australia).
Kevin Chin, VivoPower’s Executive Chairman and Chief
Executive Officer, said: “We are pleased
to have taken this step to align our core business for the next
decade of growth. With the JAM Solar business revenue delivering
62% compound annual growth rate (CAGR) since FY2019, the sale of
the non-solar business of JAM Electrical and NDT represents an
opportunity for the Company to consolidate its strategic focus
while divesting non-core service offerings. Key capabilities will
however be retained (including for the recently awarded A$11.7m
contract for Edenvale Solar Farm).
“As part of our long-term strategy to focus on our core business
units, including Tembo electric vehicles, Aevitas renewable
critical power and Vivo sustainable energy solutions, we expect to
also be divesting our broader Caret Solar business unit through a
trade sale, carve out or spin off. This sale could be in tranches
or as a whole, given interest from different groups including
crypto-mining hosting companies and renewable power developers.
“Proceeds from the sale of the above non-core business units
will be re-invested primarily in our fast-growing electric vehicle
and sustainable energy solutions businesses.”
About VivoPower
VivoPower is a sustainable energy solutions
company focused on battery storage, electric solutions for
customized and ruggedized fleet applications, solar and critical
power technology and services. The Company's core purpose is to
provide its customers with turnkey decarbonization solutions that
enable them to move toward net zero carbon status. VivoPower is a
certified B Corporation with operations in Australia, Canada, the
Netherlands, the United Kingdom, the United States and the United
Arab Emirates.
Forward-Looking Statements
This communication includes certain statements
that may constitute “forward-looking statements” for purposes of
the U.S. federal securities laws. Forward-looking statements
include, but are not limited to, statements that refer to
projections, forecasts or other characterizations of future events
or circumstances, including any underlying assumptions. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements may include, for example, statements
about the achievement of performance hurdles, or the benefits of
the events or transactions described in this communication and the
expected returns therefrom. These statements are based on
VivoPower’s management’s current expectations or beliefs and are
subject to risk, uncertainty and changes in circumstances. Actual
results may vary materially from those expressed or implied by the
statements herein due to changes in economic, business, competitive
and/or regulatory factors, and other risks and uncertainties
affecting the operation of VivoPower’s business. These risks,
uncertainties and contingencies include changes in business
conditions, fluctuations in customer demand, changes in accounting
interpretations, management of rapid growth, intensity of
competition from other providers of products and services, changes
in general economic conditions, geopolitical events and regulatory
changes and other factors set forth in VivoPower’s filings with the
United States Securities and Exchange Commission. The information
set forth herein should be read in light of such risks. VivoPower
is under no obligation to, and expressly disclaims any obligation
to, update or alter its forward-looking statements whether as a
result of new information, future events, changes in assumptions or
otherwise.
Contact
Shareholder Enquiries
shareholders@vivopower.com
Media Enquiries
vivopower@secnewgate.co.uk
Sophie Morello / Jessica Hodson Walker / Richard Bicknell
VivoPower (NASDAQ:VVPR)
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