Fusion Fuel set to acquire UK fuel business for £50 million

DUBLIN - Fusion Fuel Green PLC (NASDAQ: HTOO), an energy solutions provider with a current market capitalization of $9.02 million, has announced its intention to acquire a UK-based fuel distribution company, referred to as Target, for a total consideration of £50 million. The agreement follows a non-binding Letter of Intent, reported on April 9, 2025, and includes both cash and shares. According to InvestingPro data, the company currently shows weak financial health metrics, with an overall health score of 1.21 out of 10.

Target, which has not been publicly named, reported revenues of $58 million and a net income of $7 million for the fiscal year ending April 30, 2025. This reflects a growth from the previous fiscal year, which saw revenues of $50 million and net income of $5 million. As of April 30, 2025, the company had negligible debt, carrying only about $1 million under a revolving credit line. This acquisition target’s revenue significantly exceeds Fusion Fuel’s last twelve months revenue of $1.66 million.

The acquisition terms stipulate that Fusion Fuel will pay £40 million in debt-financed cash and £10 million in Fusion Fuel ordinary shares, subject to shareholder approval and securities registration requirements. Additionally, the agreement includes equity value protection provisions for the sellers, such as downside price protection, a buy-back option, and an upside cap provision.

The completion of the acquisition is contingent upon the execution of definitive agreements, satisfactory due diligence, legal, tax, and accounting structuring advice, and other customary closing conditions. The Heads of Terms also grant Fusion Fuel exclusivity for 90 days and contain binding confidentiality clauses.

John-Paul Backwell, CEO of Fusion Fuel, expressed that the acquisition aligns with the company’s strategy to build a diversified portfolio within the energy sector. He highlighted the complementary nature of Target’s business with Fusion Fuel’s Al Shola Gas brand and its potential to enhance service offerings.

The proposed acquisition is subject to various conditions, including regulatory approvals and successful due diligence. Both parties have reserved termination rights and may be obligated to pay termination fees under certain circumstances.

This announcement is based on a press release statement from Fusion Fuel Green PLC and should be considered in light of the company’s recent filings with the Securities and Exchange Commission, which detail risks and uncertainties that could affect the actual results of the acquisition. Target’s financial results for the fiscal years ending April 30, 2025, and 2024 are yet to be audited or re-audited, and the final figures may differ from those reported. InvestingPro analysis reveals that Fusion Fuel is currently burning through cash quickly and its short-term obligations exceed liquid assets, with a current ratio of 0.54. For comprehensive analysis of HTOO and 1,400+ other stocks, including detailed financial health metrics and Fair Value estimates, consider accessing the full Pro Research Report on InvestingPro.

In other recent news, Fusion Fuel Green PLC has secured new contracts worth $3.6 million through its subsidiary, Al Shola Al Modea Gas Distribution LLC. These contracts, obtained since early 2025, involve engineering and service projects valued at approximately $2.7 million and are expected to generate about $0.9 million in annual recurring revenue from LPG utility solutions in Dubai. Additionally, Fusion Fuel has amended its financial projections in a recent SEC filing, reflecting its acquisition of Quality Industrial Corp. The transaction, which involved acquiring 69.36% of QIND’s capital stock, will result in QIND becoming a wholly-owned subsidiary of Fusion Fuel. Furthermore, Fusion Fuel has announced its intention to acquire a UK fuel distributor for £50 million, a move that aligns with its strategic expansion into the UK market. The acquisition is expected to enhance Fusion Fuel’s energy distribution capabilities and increase revenue and profitability. In a separate development, Fusion Fuel finalized a $1.3 million private placement of senior convertible notes, maturing in August 2026, to strengthen its financial position. CEO John-Paul Backwell noted that the funding demonstrates investor confidence in the company’s strategy and operational capabilities.

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