VIVOPOWER ANNOUNCES COMPLETION OF KENSHAW SALE
VivoPower International (Nasdaq: VVPR) has completed the sale of its non-core business unit, Kenshaw Electrical, to ARA Group , an Australian industrial services group. This divestment aligns with VivoPower's strategy to reinvest in its high-growth businesses like Tembo. The sale was initially announced on April 29, with an expected completion date of July 1. STS Capital Partners in Singapore advised VivoPower on this transaction.
- Completion of Kenshaw Electrical sale aligns with VivoPower's strategic focus on high-growth areas like Tembo.
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VivoPower International PLC's sale of Kenshaw Electrical aligns with its strategic focus on reinvesting in high-growth areas such as Tembo. This move allows VivoPower to redirect capital and resources away from non-core businesses, potentially increasing the growth and profitability in its core segments. For investors, this indicates a commitment to optimizing the company's portfolio, which could lead to better returns in the future.
Financially, the divestment may lead to an immediate influx of cash, strengthening VivoPower's balance sheet. However, the long-term benefit is the ability to channel capital into areas with higher growth potential. This is a positive sign for investors looking for a company focused on strategic growth and capital efficiency.
In industry terms: Divestment refers to the process of selling off a business unit or assets to focus more on core operations. It's a common strategy for companies seeking to streamline operations and improve financial health.
The sale of Kenshaw to ARA Group Limited should be viewed in the context of VivoPower's broader market strategy. ARA Group, being a leading industrial services group in Australia, is likely to integrate Kenshaw effectively, potentially boosting its own operational capabilities. For VivoPower, this divestment aligns with their strategic pivot towards high-growth sectors such as renewable energy and electric vehicles, represented by their Tembo brand.
From a market perspective, focusing on strong growth businesses is a smart move. The renewable energy and electric vehicle markets are expanding rapidly and concentrating resources in these areas could yield significant returns. By shedding non-core businesses, VivoPower can more effectively compete and innovate within its chosen markets.
This transaction is a strategic alignment rather than an opportunistic sale, which can be more reassuring for long-term investors. It shows that the company is following a clear strategic direction and is not merely reacting to market pressures.
LONDON, July 02, 2024 (GLOBE NEWSWIRE) -- VivoPower International PLC (Nasdaq: VVPR, "VivoPower” or the "Company”) is pleased to announce that it has completed the sale of one of its non-core business units, Kenshaw Electrical (“Kenshaw”), to ARA Group Limited (“ARA”), a leading diversified industrial services group based in Australia. This follows the announcement on April 29, that a definitive asset sale agreement had been reached with ARA with expected timing for completion of July 1. The divestment is in line with VivoPower’s previously announced strategy to focus on reinvesting in its strong growth businesses including Tembo.
VivoPower was advised on this transaction by STS Capital Partners in Singapore.
About VivoPower
VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for off-road and on-road customised and ruggedised fleet applications as well as ancillary financing, charging, battery and microgrids solutions. The Company’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel covering Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
Forward-Looking Statements
This communication includes certain statements that may constitute “forward-looking statements” for purposes of the U.S. federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterisations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about the achievement of performance hurdles, or the benefits of the events or transactions described in this communication and the expected returns therefrom. These statements are based on VivoPower’s management’s current expectations or beliefs and are subject to risk, uncertainty, and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes, and other factors set forth in VivoPower’s filings with the United States Securities and Exchange Commission. The information set forth herein should be read in light of such risks. VivoPower is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.
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