Plug Power acquires forklift fuel cell maker Cellex

Fuel cell developer Plug Power of New York (Nasdaq: PLUG) is acquiring Vancouver, Canada-based Cellex Power Products, a maker of fuel cell power packs for industrial vehicles.

The acquisition is expected to close in April. Plug says it intends to continue Cellex's current operations in Richmond, near Vancouver, upon completion of the transaction, which is subject to customary closing conditions.

Plug Power will pay $45 million USD in cash for Cellex.

Cellex Power has been developing Proton Exchange Membrane (PEM) fuel cell power units for electric lift trucks, and is targeting the estimated USD 1.5 billion industrial motive battery market. In November 2006, Cellex successfully completed beta testing of its zero-emission, hydrogen fuel cell power units in pallet trucks at two Ohio-based Wal-Mart distribution centers (see Fuel cell trucks complete trials at Wal-Mart.)

The company has been working to develop products addressing all three classes of electric lift trucks, enabling complete conversion of distribution centers and maximizing customer benefits like increased productivity and reduced fueling time, as well as the elimination of cost, environmental and safety issues associated with traditional lead acid batteries.

Plug Power has traditionally pursued telecommunications backup and material handling applications as near-term markets for its own PEM fuel cell power products.

"With Plug Power, we anticipate accelerating the commercialization of our fuel cell solutions for the multi-billion dollar electric lift truck market," said Chris Reid, Cellex Power's President and Chief Executive Officer. "Plug Power's strong balance sheet and established operational capabilities in manufacturing, supply chain management and product testing, support and training will be critical to this effort."

Plug Power is active in the United States, Europe, Middle East, Russia, South Africa and South America.

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