LATHAM, N.Y.— Plug Power Inc. (NASDAQ: PLUG), a leading provider of turnkey hydrogen solutions for the global green hydrogen economy, signed a definitive agreement to acquire Frames Group, a leader in turnkey systems integration for the energy sector.
With over 35 years of experience, Frames designs, builds, and delivers processing equipment, separation technologies, flow control and safeguarding systems, for water and renewable energy solutions. Headquartered in the Netherlands, Frames has about 300 employees located largely in Europe and India.
Plug is building a hydrogen ecosystem by systematically adding complementary strengths and capabilities through key acquisitions, joint ventures, and other partnerships. Plug has steadily gained competency in key technology and critical supply chain areas such as fuel cell membrane electrode assemblies (MEAs), hydrogen delivery logistics and electrolyzers to deliver turnkey green hydrogen solutions for its customers. Partnerships with Renault, SK, Acciona, Fortescue Future Industries, Airbus and Lhyfe provide access and scale in markets new to Plug.
The Frames acquisition will support Plug Power’s goal to reach an installed electrolyzer capacity of three gigawatts (GW) by 2025. Plug will combine its world-class stack technology with Frames’ systems integration capabilities to deliver a range of turnkey electrolyzer solutions from one megawatt (MW) containers to 1,000 MW standalone plants.
“Frames Group delivers outstanding services cost-effectively to many of the world’s largest energy providers. We look forward to our journey together, delivering value to customers around the world through our green hydrogen solutions,” said Andy Marsh, CEO for Plug Power. “Plug Power is set to become one of the largest pure play green hydrogen ecosystem companies.”
With Frames’ long-standing roots in Europe, supported by an extensive European customer base, supply chain and manufacturing capabilities, Plug Power continues to build out and deepen its European presence. Through the Frames acquisition, organic growth, and partnerships, Plug will now have 200 employees in Europe. Set to open its new European headquarters in North Rhine-Westphalia, Germany, in early 2022, Plug has also invested in a manufacturing facility, service center, and a green hydrogen fund in Europe.
Revenue opportunities from the acquisition include an order backlog valued at approximately €100 million and a sizeable project pipeline that will generate revenues through 2023 with major on-shore and off-shore energy providers seeking to transition to renewable energies and green hydrogen.
Frames’ relationship with Plug Power goes back to 2017. “We are delighted to become part of the Plug Power organization,” said Frans Roozendaal, CEO of the Frames Group. “There is a great cultural fit and alignment between our teams, which we have developed over the years as partners. Together with the Plug Power team, we can assist our current customer base, accelerate their journeys and decarbonize their energy offerings.”
The acquisition is expected to be completed by the end of the year once all required approvals have been obtained. The transaction includes €85M in cash and €30M in earnouts.
About Plug Power
Plug Power is building the hydrogen economy as the leading provider of comprehensive hydrogen fuel cell turnkey solutions. The Company’s innovative technology powers electric motors with hydrogen fuel cells amid an ongoing paradigm shift in the power, energy, and transportation industries to address climate change and energy security, while meeting sustainability goals. Plug Power created the first commercially viable market for hydrogen fuel cell technology. As a result, the Company has deployed over 50,000 fuel cell systems for e-mobility, more than anyone else in the world, and has become the largest buyer of liquid hydrogen, having built and operated a hydrogen highway across North America. Plug Power delivers a significant value proposition to end-customers, including meaningful environmental benefits, efficiency gains, fast fueling, and lower operational costs. Plug Power’s vertically-integrated GenKey solution ties together all critical elements to power, fuel, and provide service to customers such as Amazon, BMW, Ikea, Carrefour, and Walmart. The Company is now leveraging its know-how, modular product architecture and foundational customers to rapidly expand into other key markets including zero-emission on-road vehicles, robotics, and data centers.
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