Leclanché and Pinnacle Strengthen Partnership with Successful Due Diligence Completion
Leclanché SA (SIX: LECN), a renowned global leader in energy storage solutions specializing in heavy-duty batteries for marine and rail customers, has announced a significant milestone in its pursuit of sustainable growth and market leadership. The company has revealed that Pinnacle International Capital Limited has successfully completed its legal, financial, and technical due diligence on the Leclanché Group, fulfilling an essential condition for the implementation of their strategic partnership.
With this milestone achieved, the next step in the partnership process will be an engineering review conducted by Pinnacle. The objective of this review is to further optimize the mutually agreed-upon business plan and investment. Concurrently, Leclanché will address specific items identified during the due diligence process, working through a detailed workplan. This collaborative effort aims to enhance the starting position of the partnership and ensure that the investment by Pinnacle yields maximum returns for both parties.
The partnership between Leclanché and Pinnacle is transformative for both companies, offering an opportunity to unlock strategic growth funding that will fuel Leclanché’s operations and facilitate the expansion of its production capabilities. This growth will include scaling up the existing production facility in Willstätt, Germany, to a capacity of up to 2 GWh per year. Additionally, a new production facility will be established in the Middle East, with an expected capacity of up to 2 GWh annually. These developments are expected to play a critical role in Leclanché’s long-term goal of becoming a global leader in sustainable energy solutions.
Leclanché’s strategic journey with Pinnacle began in June 2024 when the two companies signed a binding term sheet, which was later replaced by a framework agreement. This framework agreement outlines the terms of the strategic partnership and includes the establishment of a 50/50 joint venture (JV) between Leclanché and Pinnacle. The JV will oversee mass battery production, with both parties collaborating to build two state-of-the-art, up to 2 GWh per year production facilities—one in Europe, expanding Leclanché’s existing site in Willstätt, and another in the Middle East. These new, advanced facilities are expected to significantly enhance Leclanché’s manufacturing capacity and provide the company with the resources needed to meet the surging demand for batteries in both regions.
Strategic Partnership: Key Milestones
The JV proposal originally anticipated up to CHF 360 million in funding to support Leclanché’s ongoing business activities. This includes the expansion of Leclanché’s Willstätt production facility by up to 2 GWh per year and the creation of a new 2 GWh per year facility in the Middle East. However, both parties have agreed that the final investment amount, the financial deployment structure, and the timeline for funding will be determined based on the outcome of the engineering review and the workplan that is being developed in parallel.
As part of the agreement, Pinnacle will make a contribution in kind, adding 50% of the JV shares into Leclanché. In return, Pinnacle will receive newly issued shares in Leclanché, which will represent approximately 40% of the company. Additionally, Pinnacle will have the option to acquire up to 30% of Leclanché from the majority shareholder, SEF-LUX, for a consideration of up to CHF 240 million. This could bring Pinnacle’s total shareholding in Leclanché to 70%, further strengthening their position as a key strategic partner.
The JV will oversee the financing of the operational needs and expansion of Leclanché’s battery production plants. Importantly, the JV will be managed by Leclanché’s current leadership team, ensuring continuity and the leveraging of their expertise in the energy storage industry. Both Leclanché and Pinnacle are committed to building state-of-the-art production facilities that will address the rapidly evolving energy storage needs across Europe and the Middle East. To support the company until Pinnacle’s funding is available, Leclanché is working on securing bridge financing, which may involve debt and/or equity.
This strategic partnership is crucial for Leclanché, providing a clear pathway to execute its business plan and scale its operations globally. Pinnacle’s investment is a significant step forward in supporting the green energy transition and in positioning Leclanché for accelerated growth. The companies are aiming to finalize agreements and initiate funding within six months, with both parties fully committed to achieving their shared strategic objectives. Regular updates will be provided to shareholders to ensure they remain informed about key developments throughout the partnership’s evolution.
Leadership Insights
In a statement reflecting on this important milestone, Lex Bentner, Chairman of the Board of Directors at Leclanché, expressed his excitement about the progress of the deal: “We are proud to announce the completion of a further milestone in this transformative partnership, marking an exciting new chapter for Leclanché. We extend our heartfelt gratitude to the majority shareholder for their unwavering support over the years and their invaluable contributions to the Company’s success. This transaction highlights our confidence in the Company’s promising future, and we are eager to collaborate with Pinnacle and continue building on our past achievements.”
Pierre Blanc, CEO of Leclanché, also shared his enthusiasm for the partnership: “We are delighted to announce the completion of the due diligence process and to move forward with the transaction. This strategic partnership will enable Leclanché to accelerate its growth and provide the financial resources necessary to scale our operations worldwide. Our ultimate goal is to leverage this partnership to establish Leclanché as a global leader in sustainable energy solutions and to contribute to the ongoing green energy revolution.”
Future Prospects for Leclanché
Looking forward, the partnership with Pinnacle holds tremendous potential for Leclanché. The financial backing, combined with the strategic expertise brought by Pinnacle, will significantly enhance Leclanché’s ability to scale its operations and meet the growing demand for energy storage solutions in critical sectors like marine, rail, and beyond. The establishment of two advanced production facilities—one in Europe and another in the Middle East—will allow Leclanché to increase its manufacturing capacity and expand its market presence in regions where battery demand is rapidly increasing.
With Pinnacle’s support, Leclanché is well-positioned to achieve its vision of becoming a leader in sustainable energy solutions while playing an instrumental role in the global green energy transition. The strategic partnership will also create numerous opportunities for job creation and economic growth in the regions where the new production facilities are located.
The road ahead is filled with exciting opportunities, but Leclanché remains committed to its core mission: to innovate, lead, and drive the future of energy storage solutions. As the partnership with Pinnacle moves forward, Leclanché will continue to focus on maintaining the highest standards of operational excellence, technological innovation, and customer satisfaction, ensuring that it remains at the forefront of the energy storage industry.
In conclusion, the collaboration between Leclanché and Pinnacle International Capital represents a major leap forward in both companies’ efforts to drive sustainable growth, expand their market footprint, and contribute to the global green energy transition. With the completion of the due diligence process and the upcoming engineering review, Leclanché is poised for an exciting future, with a clear path to scaling its operations, expanding its production capacity, and meeting the energy storage demands of the future.