Leclanché and Pinnacle Foster Groundbreaking Partnership
Leclanché and Pinnacle Foster Groundbreaking Partnership
YVERDON-LES-BAINS, Switzerland - Leclanché SA (SIX: LECN), a prominent name in energy storage innovations, is thrilled to announce a significant development in its strategic partnership with Pinnacle International Capital Limited. Following a comprehensive due diligence process, Pinnacle has successfully completed legal, financial, and technical assessments of the Leclanché group.
Next Steps in the Strategic Partnership
The next phase will involve an engineering review by Pinnacle, aimed at fine-tuning the business plan and investment strategies. Concurrently, Leclanché is committed to addressing identified due diligence aspects, enhancing the foundation for this promising collaboration.
Milestones in Energy Storage Expansion
This partnership plays a crucial role in unlocking necessary funding to bolster Leclanché's ongoing operations. One of the highlights will be expanding its production facility in Willstätt to a capacity of up to 2 GWh/year, alongside a potential new facility in the Middle East, also aimed at the same production capacity. This collaboration signifies a monumental shift towards ensuring sustainable growth and profitability for Leclanché.
Construction of Advanced Production Facilities
The binding term sheet, initially announced earlier, paved the way for a robust framework agreement. This agreement embodies the creation of a 50/50 joint venture (JV) between Leclanché and Pinnacle, dedicated to overseeing mass battery production to meet the increasing market demand.
Strategic Investments and Contributions
The JV proposal is anticipated to bring in CHF 360 million for Leclanché's expanding operations. This investment focuses on increasing the output of its Willstätt facility and the establishment of a new facility in the Middle East. Pinnacle will contribute 50% of the JV shares, receiving newly issued shares of Leclanché in exchange.
Pinnacle's Role in the Partnership
Moreover, Pinnacle has an option to acquire an additional 30% stake from SEF-LUX, elevating its total shareholding to 70%. This strategic move promises a thorough enhancement of Leclanché’s manufacturing capabilities.
Leadership Voices on the Partnership
Lex Bentner, Leclanché's Chairman, expressed his pride in the completion of this milestone, recognizing the unwavering support from shareholders. He emphasized the deal's significance and its alignment with the company's ambitious future goals.
Pierre Blanc, CEO of Leclanché, highlighted that this partnership positions them for rapid expansion, promoting global operations that align with sustainable energy goals.
About Leclanché
Founded in 1909, Leclanché is a leader in low-carbon energy storage solutions utilizing lithium-ion technology. Its rich heritage and commitment to innovation have solidified its reputation in the battery market. The company focuses on three strategic business units: energy storage, e-mobility, and specialty battery systems, with a workforce of over 350 employees distributed across various countries.
About Pinnacle International Capital
Pinnacle International Capital is a premier private equity firm specializing in energy, technology, and real estate. With a strong focus on sustainable growth, Pinnacle leverages its vast investment expertise to drive innovation in essential sectors, showcasing a dedication to fostering a sustainable future.
Frequently Asked Questions
What is the significance of the partnership between Leclanché and Pinnacle?
This partnership aims to enhance Leclanché’s production capabilities and drive sustainable growth through significant investments.
What are the next steps after due diligence?
The next phase involves an engineering review by Pinnacle and further development of the joint venture plans.
What is the expected investment amount from Pinnacle?
Pinnacle's investment is projected to reach up to CHF 360 million for operational expansion and new facilities.
How does this partnership address market demands?
The joint venture will focus on mass battery production to meet growing demand in Europe and the Middle East.
What roles do the leadership play in this partnership?
Leclanché’s leadership will manage the JV, ensuring continuity, leveraging their expertise, and driving strategic execution.
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