Member Article

Sheffield’s Pressure Technologies acquires New Zealand firm for £12.4 million

Sheffield-based Pressure Technologies has announced the acquisition of New Zealand-based Greenlane Biogas Holdings Ltd, a developer and supplier of patented technology for upgrading raw biogas to high purity biomethane.

Pressure Technologies will pay NZ$ 25 million (£12.4 million), comprising an initial consideration of NZ$12.0 million (£6 million) with additional deferred payments, split over four years, of up to a maximum of NZ$13.0 million (£6.4 million), based on the future financial performance of Greenlane.

Alan Wilson, chairman of Pressure Technologies, said: “We believe that this deal represents an excellent opportunity to expand the Group’s Alternative Energy division with the acquisition of a business, intellectual property, technology and employees that we know very well.

“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 over the next six months and the Board expects it to be earnings enhancing in the year ending 1 October 2016.”

Rob Fenwick, chairman of Greenlane, said: “The combination of Greenlane and Pressure Technologies makes very sound business sense. Being part of a strong, growing AIM listed plc gives Greenlane the backing it needs to fulfil its true potential.

“Greenlane is 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 Acquisition is expected to be 1 October 2014. Further details of the terms of the Acquisition are set out below.

This was posted in Bdaily's Members' News section by Clare Burnett .