Benzinga | Oct 15, 2020 09:07AM EDT

Ballard Sells UAV Business To Honeywell; Terms Not Disclosed

VANCOUVER, BC, and SOUTHBOROUGH, MA, Oct. 15, 2020 /PRNewswire/ - Ballard Power Systems (NASDAQ:BLDP) (TSX:BLDP) today announced that it has sold the Unmanned Aerial Vehicle (UAV) business assets of its subsidiary located in Southborough, Massachusetts to Honeywell International ("Honeywell"; www.honeywell.com).

All employees of the UAV subsidiary will transition to Honeywell Aerospace. Financial terms have not been disclosed. The companies are also committed to a long-term strategic collaboration to combine Ballard's expertise in fuel cell technology with Honeywell's leadership in aerospace and are working on agreements in respect of this collaboration.

Randy MacEwen, Ballard President and CEO said, "We remain positive on the long-term outlook for fuel cell propulsion systems in the UAV market. However, we determined to divest this non-core systems business given our strategic focus on the Heavy- and Medium-Duty Motive markets of bus, truck, train and marine, where we expect scaled commercialization and growth through 2030 and beyond. We believe the UAV business will be best positioned within the Honeywell enterprise and look forward to our ongoing collaboration with Honeywell and growing the exciting business opportunities for a range of urban air mobility and broader aerospace applications."