Canada is another $2m in revenue alone….this is a good move. I especially like them being able to brand them with the iGo name…
iGo® Enters Rechargeable Battery Market Through Strategic Partnership with PureEnergy Solutions
SCOTTSDALE, Ariz.–(BUSINESS WIRE)– iGo, Inc. (Nasdaq: IGOI), a leading provider of eco-friendly power management solutions and mobile electronic device accessories, today announced the signing of a marketing, distribution and licensing agreement with PureEnergy Solutions, the world’s only manufacturer of rechargeable alkaline batteries. Pursuant to the agreement, iGo will be the exclusive marketer and distributor of PureEnergy Solutions’ patented rechargeable alkaline batteries to retailers worldwide (excluding China) with non-exclusive distribution rights in Africa.
iGo also simultaneously entered into an agreement with Premier Tech Home & Garden to take over its current distribution rights for PureEnergy batteries in Canada, including the transition of its current customer relationships for PureEnergy batteries with retailers such as Walmart Canada. These accounts currently represent approximately $2 million in annualized revenue. As part of the agreement with Premier Tech Home & Garden, iGo purchased current inventory to support sales to these accounts.
The batteries and chargers will be sold worldwide primarily under the iGo Green® brand, although some existing customers in Canada will continue to sell the batteries and chargers under the PureEnergy brand and the retailers’ own private label brands. iGo will initially offer rechargeable alkaline batteries in AA and AAA sizes along with multiple charging solutions, such as wall outlet and USB chargers.
Rechargeable alkaline batteries can be used in any device that uses disposable alkaline batteries, with the additional benefit of being rechargeable up to 100 times. Selling for approximately 30-40% less than other rechargeable battery options (such as nickel metal hydride or lithium batteries), rechargeable alkaline batteries are the least expensive and most environmentally friendly option in the rechargeable battery market. Unlike nickel metal hydride rechargeable batteries, rechargeable alkaline batteries will also hold their charge for up to seven years.
“We are very excited to sign this agreement with PureEnergy Solutions and enter the rechargeable alkaline battery market,” said Michael D. Heil, President and Chief Executive Officer of iGo, Inc. “This is a great strategic fit with our existing product portfolio and retail distribution network, and further strengthens iGo’s positioning as a leader in ‘green’ power solutions. Rechargeable batteries comprise 15-20% of the overall battery market in Europe and Canada, but less than 5% in the United States. We believe the market for rechargeable alkaline batteries has strong growth potential as more consumers become aware that there is an inexpensive alternative to wasteful, single-use disposable alkaline batteries. We believe that we can steadily grow the sales of this product line in the coming years as we leverage our retail distribution network and increase the number of locations where these batteries are sold in the United States and Europe.”
As part of its agreement with PureEnergy, iGo will pay certain ongoing royalties to PureEnergy on future sales for the use of the PureEnergy brand, the use of PureEnergy charger technology, and iGo sales to specific customers. The initial term of the agreement is five years, provided, however, that iGo must achieve annual minimum sales targets in order to retain its exclusive distribution rights, otherwise its distribution rights will convert to non-exclusive distribution rights. If iGo achieves its annual minimum sales targets, it will have the option to extend the agreement for a total of 15 years.