Eos Energy Enterprises Inc today announced it took complete control of HI-POWER LLC. In fact, the latter is Eos Energy’s manufacturing joint venture (JV) with Holtec International.
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Eos Energy on acquiring HI-POWER’s remaining stake
This Thursday, Eos Energy Enterprises announced it took complete control of its JV with Holtec International, HI-POWER LLC. Accordingly, the company bought the 51% remaining stake in the venture for up to USD 35 million.
In fact, the transaction includes paying back Holtec’s initial $10 million capital contribution in the JV. Also, it contains five annual installments of $5 million.
According to Eos Energy, the transaction gives it complete control over the supply chain, back-office functions, staff, and day-to-day HI-POWER management.
Furthermore, Eos expects the acquisition to enhance its operational and financial flexibility through its supply chain’s vertical integration.
Indeed, HI-POWER’s manufacturing plant is located near Pittsburgh in Pennsylvania. Besides, it is near to over 80% of Eos’s suppliers.
More about the acquisition
In fact, HI-POWER was set up in August 2019. Accordingly, its mission was to expand the production of Eos’ proprietary aqueous Znyth batteries. Indeed, these batteries are superior to competing technologies, including lithium-ion, across seven impact categories. Furthermore, HI-POWER has exclusive manufacturing rights in North America.
“HI-POWER filled an essential role at a critical juncture for our business and allowed us to ramp up a manufacturing operation quickly,” said Joe Mastrangelo, Chief Executive Officer of Eos.
“This acquisition, combined with the supply chain expertise of our new Chief Operating Officer, Jody Markopoulos, will strategically position us to build out the manufacturing team and further scale our production.”
Moreover, Dr. Kris Singh, Chief Executive Officer of Holtec, will step down from Eos’s Board of Directors effective immediately. Thus, Eos will seek to add a new Board member over the coming months strategically.
Therefore, Mastrangelo said: “We would like to express our most sincere gratitude and appreciation to Dr. Singh and wish him the best of luck in his future endeavors.”
Finally, Holtec will continue to serve as a preferred sales partner.