- VivoPower ( NASDAQ: VVPR ) announced the sale of two non-core business units in Australia, J.A. Martin Electrical (JAM Electrical) and NDT Services to ARA Group, diversified industrial services group based in Australia.
- The company will receive upfront consideration and an earnout based on FY23 EBITDA results for the businesses which could total up to A$10M.
- The sale is expected to be completed and settled on July 1, 2022.
- Proceeds from the sale of the above non-core business units will be re-invested primarily in the company's fast-growing electric vehicle and sustainable energy solutions businesses.
- VivoPower is retaining its growing J.A. Martin's Solar business, which will become a new division of its existing Australian business arm, Kenshaw.
- "With the JAM Solar business revenue delivering 62% CAGR since FY19, the sale of the non-solar business of JAM Electrical and NDT represents an opportunity for the company to consolidate its strategic focus while divesting non-core service offerings," Executive Chairman and CEO Kevin Chin commented.
For further details see:
VivoPower divests two non-core business units, announces strategic reorganization