Fusion Fuel Green PLC, an Irish provider of energy engineering and advisory services, announced it has signed a non-binding letter of intent to acquire all shares of a privately held British fuel distribution company. The proposed deal, worth a total of £50mn, marks a significant step in the company’s international growth strategy.
The transaction structure includes an upfront payment of £25mn in cash financed through debt, £2mn in cash from a capital raise, £8mn in Fusion Fuel shares under a make-whole agreement, and two deferred payments of £7.5mn each, due nine and eighteen months following closing. If confirmed, the acquisition would reinforce the group’s focus on vertical integration within the energy chain.
Strong financial performance from the target
The British company generated over $50mn in revenue in 2023, with $4mn in net income. In 2024, it continued its growth trajectory, recording $54mn in revenue and $7mn in net income. These results enhance the strategic appeal of the target, considered aligned with Fusion Fuel’s ambition to achieve consolidated operational profitability in its distribution activities.
John-Paul Backwell, Chief Executive Officer of Fusion Fuel, stated that the project followed the company’s late 2024 acquisition of Quality Industrial Corp. He emphasised the goal of building a portfolio of profitable and complementary companies, while strengthening the group’s footprint in European markets.
A process subject to conditions and review
The letter of intent remains non-binding at this stage. Finalisation of the agreement is subject to financial, legal and regulatory due diligence, as well as the negotiation and signing of definitive agreements. Fusion Fuel must also secure all necessary regulatory approvals to complete the transaction.
The company indicated that further updates will be provided as discussions progress. If completed, the acquisition would enhance Fusion Fuel’s presence in the UK market and support the consolidation of recurring revenues in a strategic segment of the energy value chain.
