Greenlane Biogas sold to Pressure Technologies
Pressure Technologies has acquired the business and certain assets of New Zealand-based biogas-to-grid technology developer and supplier, Greenland Biogas Holdings.
The deal was announced following the completion of detailed due diligence and once Pressure Technologies agreed to the terms of the acquisition.
Greenlane's applications are used to capture biogas released from multiple waste sources and its technology can be applied to turn landfill gas into biomethane.
The maximum total consideration for the acquisition is NZ$25 million (€15.5 million), comprising an initial consideration of NZ$12 million with addition deferred payments, split over four years, of up to a maximum NZ$13 million, based on the future financial performance of Greenlane. The initial consideration will be met from Pressure's existing cash resources.
According to a statement, the board of directors 'believes the acquisition is complimentary to the Pressure's existing subsidiary Chesterfield Biogas, which has been working with Greenlane since 2008 under an exclusive license to sell Greenlane Technology in the UK.
The board is now looking to form an enlarged alternative subsidiary comprising Chesterfield Biogas and Greenlane.
Alan Wilson, chairman of Pressure Technologies, says: 'Our intention is to combine Greenlane's proven patented technology with our commercial and management capabilities to capitalise on the significant global market opportunity. The acquisition will be integrated rapidly into the group [Pressure] over the next six months and the board expects it to be earnings enhancing in the year ending 1 October 2016.'
Greenlane's chairman Rob Fenwick, adds: 'We are considered one of New Zealand's global cleantech success stories. Under Pressure Technologies' ownership it secures a good cultural fit and I believe the acquisition delivers the best possible value to the stakeholders of both companies.'
The effective date of the transaction is expected to be 1 October 2014.