Leclanché signs key partnership agreement with Pinnacle International Capital to secure expansion funding

 Leclanché SA (SIX: LECN), a global leader in energy storage solutions, has entered into a binding agreement with Pinnacle International Capital, a global private equity firm based in London, United Kingdom. This agreement establishes the creation of a joint venture and a significant participation in the company, subject to the completion of a standard due diligence.

Under the terms of the agreement, Pinnacle and Leclanché will establish a joint venture company funded by Pinnacle for an amount of up to CHF 360 million and Leclanché will take a 50% stake in the joint venture company through a contribution in kind, giving Pinnacle approximately 40% stake in Leclanché. The CHF 360 million will be subject to the outcome of the engineering review and the due diligence during which the final exact amount will be determined. Pinnacle will outline the financial deployment structure during the engineering review. Pinnacle will be granted a further option to acquire 30% additional stake in Leclanché through an agreement with SEF Lux[1] in the amount of up to CHF 240 million, the exact amount and percentage will be determined during the course of the due diligence. The partnership will be establishing two 2 GWh facilities: one in Europe at the company’s existing facilities in Germany and one in the Middle East, designed to cater to regional battery markets.

Once implemented, this transaction will fully fund Leclanché’s business plan and expand its operations. With the growing demand for Leclanché storage solutions, this partnership will provide a solid basis for the business to accelerate its growth.

Mr. Pierre Blanc, CEO of Leclanché, stated: “This partnership with Pinnacle is a pivotal step for Leclanché, providing the necessary resources and strategic positioning to expand our footprint in Europe and the Middle East. The new facilities will significantly increase our production capabilities and allow us to better serve our customers. We look forward to building the business with Pinnacle alongside our existing shareholders. It has been very important for us to bring on board a new partner that helps the company reach its full potential and allows us the production scale required for profitability.”

Mr. Saud Al Aiban, Founder and Managing Director of Pinnacle International Capital stated We are delighted to announce the signing of this partnership with Leclanché SA. We firmly believe in Leclanché’s exceptional potential to lead the green energy transition. This collaboration underscores Pinnacle’s commitment to advancing renewable energy solutions and driving environmental progress. We look forward to starting our due diligence process and working towards finalising this partnership and contribute significantly to the global green energy transformation”.

The joint venture factories operations will be managed by Leclanché’s management team under a management agreement. This strategic collaboration will enhance Leclanché’s manufacturing capacity and address the growing demands of both European and Middle Eastern markets.

Leclanche expects implementation of this partnership agreement to take six to nine months and will keep shareholders informed about important steps in the process.