"Tritium raises $30m for charging stations" - AFR article on...

"Tritium raises $30m for charging stations" - AFR article on 7/8/2019

Electric vehicle fast charging station company Tritium is embarking on a $30 million capital raising to fuel robust growth in demand from Europe and the United States for a company now valued at $330 million.Tritium, with headquarters in Brisbane, already has global giant Gilbarco Veeder-Root as one of its major shareholders after that group injected $58 million into the company last year for a 19.3 per cent stake.Gilbarco is the market leader around the world in petrol bowsers and fuel delivery technology, and is owned by New York Stock Exchange-listed Fortive Corporation, with a market capitalisation of US$24 billion ($35.8 billion).Tritium chief executive David Finn said the growth rates in the sector were accelerating fast as electric vehicle take-up rose, particularly in Europe.Tritium chief executive and co-founder David Finn (right) and head of corporate development David Toomey (left) suppliedVehicle owners wanted stations with the ability to charge their vehicles quickly. The Veefil fast-charger gave an extra 100km-plus of range from a 20-minute hook-up. The fund raising is timed to ensure production could keep up with demand, which had more than doubled in the past year.Advertisement"There's a real tornado going on in the industry,'' Mr Finn said."There is a big opportunity to build out this infrastructure''.

Tritium, which has a workforce of 300 including 80 staff in Europe and the US, had already raised $90 million in the past two years in several rounds of capital raising. Taking advantage of short-term growth but being mindful of long-term strategy and good returns for investors was a balancing act."One of the challenges has been in getting the timing right,'' Mr Finn said.Coal Baron On BoardThe biggest shareholder in Tritium prior to the current raising is coal entrepreneur Trevor St Baker and his venture capital arm, with 25.5 per cent. NSW firm Varley Group had 21 per cent, with Gilbarco at 19.3 per cent.The founders including Mr Finn hold a combined 14.6 per cent. Tritium has 34 individual shareholders, along with a staff investment vehicle.Tritium generated revenues of $61 million in 2018-19 in a year in which growth had more than doubled, he said.RelatedElectric trucks pitched as game changer for Australian marketMr Finn said it was on course to reach $100 million-plus in revenues this financial year.Europe has been delivering the strongest growth."Europe is definitely our flagship in terms of revenue at this point in time,'' Mr Finn said.There are more than 3,000 Tritium fast-charging stations installed around the world in 30 countries. The 50kW model generally sells for around $30,000, while a more powerful 350kw version sells for around $100,000.The fast growth in the electric vehicle industry is attracting more private equity money into the sector as mass-market take-up rises and the demand for associated infrastructure climbs.Private Equity Hunting'David Toomey, the chief of staff and head of corporate development at Tritium, said the $30 million raising was fully underwritten. Across the industry, funding has shifted more towards private equity funds and away from venture capital as the industry matures."In the last 12 months we have seen a real shift from venture capital to infrastructure capital,'' Mr Toomey said.Tritium has won deals in the past few months to supply fast chargers at 120 sites in Europe for the IONITY network, and for up to 2,500 sites across the United Kingdom as part of a BOX Energi network.Mr Finn said the strategic stake taken by Gilbarco last year sped up the offshore push.Tritium has about 50 per cent market share for fast chargers in Norway, a pioneer in the adoption of electric vehicles because of the big government incentives for those who shun petrol-powered cars.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@copyright link

** "Tritium generated revenues of $61 million in 2018-19 in a year in which growth had more than doubled, he said." - RFT, being Tritrium's partner, should get a fair share of the revenue upside. DYOR