by Timothy McQuiston, Vermont Business Magazine Northern Power Systems Corp based in Barre, a distributed wind company, announced in a press release Tuesday that on February 11, 2019, the company sold its energy storage business, including Northern’s energy storage project pipeline and related intellectual property, to WEG Electric Corp. At closing, NPS received proceeds of approximately $1.1 million and WEG hired eight energy storage focused employees from Northern. Despite the sale of its NPS’s energy storage assets, the company will maintain its distributed wind business and intends to market and sell its distributed wind turbines in a variety of markets, including Italy, the United States, Canada, the Caribbean, the United Kingdom and Germany.
In addition, the company stated that it continues to explore all strategic alternatives and transactions, including the sale of the business or some or all of its assets and business lines,and its distributed wind turbine and/or distributed wind service segments. The company said it is uncertain if its efforts to identify and effect one or more strategic transactions will be successful. It previously stated that the business could fold.
Northern Power wind turbine at DynaPower in South Burlington. VBM photo.
Northern Power has a long history in Vermont and while based in Waitsfield, before a previous sale, was winner of SBA Small Business Person of the Year (2002). The company subsequently was sold and moved to Connecticut before again being sold and relocated back to Vermont. It eventually went public on the Toronto Stock Exchange (TSX: NPS), but was de-listed by the TSX in October 2018 for low stock value. It previously sold its large wind turbine business to Brazilian firm WEG SA in 2016. In 2017 it was forced to furlough most of its Barre workforce.
Its revenues were as high as $54 million in 2015 but lost much of its sales because of lost business in Italy. The TSX minimum is a $2 million market cap.
In conjunction with the disposition of disposition of NPS’s energy storage business to WEG, the Company announced on February 12, 2019 (i) the departure of its Interim Chief Financial Officer Ciel R. Caldwell. effective immediately, and (ii) the appointment of William St. Lawrence, as the Company’s Interim Financial Officer. While serving in this capacity St. Lawrence will continue to serve as the Company’s Interim Co-Chief Executive Officer and General Counsel.
Under the terms of separation, the Company may engage Caldwell as a consultant. Caldwell confirmed that her departure did not result from a disagreement with the Company on any matter relating to the Company’s operations, policies or practices, including its controls or financial related matters.
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About Northern Power Systems Corp.
Northern Power Systems designs, manufactures, sells and services distributed wind turbines. With approximately 21 million run-time hours across its global fleet, Northern Power wind turbines provide customers with clean, cost-effective, reliable renewable energy. NPS turbines utilize patented permanent magnet direct drive (PMDD) technology, which uses fewer moving parts, delivers higher energy capture, and provides increased reliability thanks to reduced maintenance and downtime.
Northern Power has been a technology innovator for over 40 years and serves clients around the globe from its US headquarters and European offices. www.northernpower.com.