On Friday, shares of fuel cell maker Plug Power (NASDAQ:PLUG) are soaring, up over 10% to $2.34 per share in morning trading after the company announced a new expanded deal with Walmart (NYSE:WMT) . Shares of the brick-and-mortar retailer are down a slight 0.37% in same time frame.
As part of the partnership, Plug Power will provide its GenKey hydrogen fuel station and fuel cells to up to 30 additional Walmart store locations in North America over the next three years. The company was operating 22 Walmart sites at the end of last year, and deployed a new site every six weeks since 2014.
Another aspect of the deal expansion includes the issuing of warrants to Walmart for the purchase of up to 55.3 million common shares of PLUG, with the first 5.8 million bought after the transaction is completed. The shares’ total value is worth roughly $600 million, and Walmart plans on paying Plug Power in $50 million installments.
Plug Power’s GenKey technology offers customers "a complete range of turnkey services to streamline the entire hydrogen and fuel cell-adoption process,” including a GenDrive or GenSure hydrogen fuel-cell system; GenFuel hydrogen infrastructure and fuel; and GenCare aftermarket customer service and support.
There aren’t many companies offering turnkey solutions like Plug Power, so its recognition throughout the industry is widespread. And, Walmart isn’t the only partnering with Plug Power; Kroger (NYSE:KR) , Sysco (NYSE:SYY) , Coca-Cola (NYSE:KO) , and Procter & Gamble (NYSE:PG) have all deployed GenDrive units throughout their business.
Currently, PLUG is a #3 (Hold) on the Zacks Rank. Shares of the company have gained about 77% so far in 2017.
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Coca-Cola Company (The) (KO): Free Stock Analysis Report
Sysco Corporation (SYY): Free Stock Analysis Report
Plug Power, Inc. (PLUG): Free Stock Analysis Report
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Procter & Gamble Company (The) (PG): Free Stock Analysis Report
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