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Fusion Fuel Green HTOO has completed the previously announced acquisition of a 70% stake in Quality Industrial Corp. (“QIND”) through a share exchange. This aligns with Fusion Fuel's strategy to build a full-service energy engineering business by integrating capabilities in both the traditional and clean energy sectors to meet the demands of the global power and utilities market.
Per the deal, HTOO will issue a combination of 19.99% of its ordinary shares, along with convertible preferred shares.
Strategic Benefits of the HTOO- QIND Deal
Headquartered in Dubai, UAE, QIND is an industrial company specializing in the energy sector. Its operating business, Al Shola Gas, caters to nearly 40,000 customers across the Middle East from its seven operating facilities. Al Shola Gas reported revenues of $11 million and net income of $1.8 million in 2023.
The combination of Fusion Fuel and QIND will not only help HTOO meet current market demand but also position it for long-term growth opportunities in the clean hydrogen sector.
The acquisition is anticipated to deliver significant synergies, particularly between Fusion Fuel's specialized hydrogen engineering services and QIND's competencies across the gas and utility value chain.
This acquisition will enable QIND to expand its offerings in the European markets, where demand for gas engineering expertise is consistently rising. It will also allow Fusion Fuel to extend its hydrogen engineering services in the Middle East, which is experiencing growing demand and investment in clean energy.
Earlier this month, Fusion Fuel’s Portuguese operating subsidiary filed for insolvency. Management is recalibrating its business strategy to better align with current market conditions. In this scenario, the company stated that it will focus on enhancing its hydrogen engineering and advisory offerings, where it is uniquely positioned to deliver high-value solutions with low capital expenditure and a highly scalable business model.
HTOO’s Price Performance
HTOO’s shares have lost 74.3% in the past year against the industry’s 24.2% growth.
Image Source: Zacks Investment Research
HTOO’s Zacks Rank and Stocks to Consider
Fusion Fuel currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Graham Corporation GHM, Federal Signal Corporation FSS and RBC Bearings Incorporated RBC. GHM sports Zacks Rank #1 (Strong Buy) while FSS and RBC have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.