Doosan Buys Second Fuel Cell Company in $32.4 Million U.S. Deal

Jul 21, 2014 9:46 am ET

July 21 (Bloomberg) -- Doosan Corp., a South Korean conglomerate, agreed to buy ClearEdge Power Inc. for $32.4 million in a U.S. bankruptcy auction, its second acquisition this month of a fuel cell producer.

Doosan on July 10 agreed to buy Fuel Cell Power Inc. and will combine the two companies into a new unit, Doosan Fuel Cell America, the Seoul-based company said in an e-mailed statement today. Jennifer Sager, a spokeswoman for ClearEdge, didn’t immediately respond to a call seeking comment.

Doosan won the assets and liabilities of ClearEdge in an auction. The deal was approved by a bankruptcy court in San Jose, California, giving it control over the closely held fuel cell maker based in Sunnyvale, California, which filed for reorganization on May 1. A former employee has filed a class- action lawsuit claiming he wasn’t given the required 60 days’ notice before being fired.

Stationary fuel cells produce electricity from natural gas or biogas in a chemical process that produces few pollutants. Manufacturers including FuelCell Energy Inc. and Ballard Power Systems Inc. have surged in the past year on optimism that demand for clean onsite generation will increase demand.

--With assistance from Heesu Lee in Seoul.