NACCO buys fuel cell provider

CLEVELAND, Ohio—NACCO Materials Handling Group, Inc (NMHG) has acquired Nuvera Fuel Cells, Inc.

Nuvera, located in Billerica, Massachusetts, is a development-stage technology and product development company focused on fuel cell stacks and related systems and supporting on-site hydrogen production and dispensing systems that can deliver clean energy solutions to customers. Nuvera’s established reputation and leadership in fuel cell technology offers the opportunity for direct access to fuel cells particularly suitable for lift truck applications, as well as the supporting fuel technologies that are applicable to its product lines.

Following the acquisition of Nuvera, the NACCO intends to commercialize Nuvera’s research and technology through the rapid integration of this fuel-cell technology across large parts of the NACCO’s lift truck product range. NACCO expects to be able to offer its Hyster and Yale customers an integrated, factory-fitted fuel-cell solution as well as associated hydrogen generation and delivery capability. In addition, NACCO will offer aftermarket solutions designed to fit most any electric powered lift truck brand in the market today. It will market these solutions in partnership with its leading independent distribution, national account sales teams and fleet management services to existing and new Hyster and Yale customers.

While Nuvera technologies have proven capabilities, commercialization of products that utilize these technologies remain in the development stage. As a result, Nuvera is expected to generate significant operating losses over the next two to three years before it can fully commercialize the technology and achieve breakeven results. The acquisition was completed for a modest purchase price with certain contingency payments that are expected to be paid to the selling shareholders based on future deployment of certain elements of the acquired technology. In addition, Hyster-Yale expects to expense up to $40 to 50 million over the next two to three years for additional research and development to commercialize the technology and reach break-even.