Core Viewpoint - Fusion Fuel Green PLC has signed non-binding Heads of Terms to acquire 100% equity of a UK-based fuel distribution business, indicating a strategic move to enhance its energy solutions portfolio [1][3]. Financial Performance of Target - For the fiscal year ending April 30, 2024, Target generated revenues of approximately $50 million and net income of approximately $5 million [2]. - In the following fiscal year ending April 30, 2025, Target achieved revenues of approximately $58 million and net income of approximately $7 million, reflecting strong growth [2]. Acquisition Details - The total consideration for the acquisition is £50 million, comprising £40 million in debt-financed cash and £10 million in Fusion Fuel ordinary shares, subject to shareholder approval and securities registration [3]. - The Heads of Terms include equity value protection provisions, such as downside price protection for sellers, a buy-back option, and an upside cap provision [4]. Definitive Agreements - The definitive agreements are expected to include customary representations, warranties, and covenants, along with termination rights and potential termination fees [5]. - Entry into definitive agreements will depend on legal, tax, and accounting structuring advice, satisfactory completion of due diligence, and satisfaction of conditions outlined in the Heads of Terms [5]. Exclusivity and Confidentiality - The Heads of Terms contain binding exclusivity and confidentiality terms, preventing Target from soliciting or negotiating with other parties for 90 days from the signing [6]. Strategic Commentary - The CEO of Fusion Fuel highlighted that the acquisition of Target represents a significant step in the company's growth journey, complementing its existing Al Shola Gas brand and expanding service offerings [7].
Fusion Fuel Green PLC Signs Non-Binding Heads of Terms for Strategic UK Energy Distribution Acquisition