Private equity firm Viburnum Funds has invested in Magellan Power, a Perth-born power systems manufacturer for the resources, defence and data centres industries.
Perth company Magellan Power is looking for external investors to help fund an expansion of its business, including the construction of a new headquarters and manufacturing facility.
Magellan Power is considering operations for a capital raising early next year, including an IPO, as it sharpens its strategy to expand production of standalone power systems and microgrids.
Bibra Lake-based Magellan Power has been hit by the insolvency of EC&M after supplying nearly $500,000 of equipment to a project, leading managing director Masoud Abshar to add his voice to calls for stronger laws around payment of subcontractors.
About $150 million of non-lithium projects for the battery industry are in the pipeline for Kwinana, with Magellan Power and Pilbara Metals Group the latest proponents.
WA is one of the world's largest producers of lithium, but a plan to diversify from mining into advanced manufacturing opportunities will be tricky to shore up.
Two local enterprises have joined forces to leverage off each other's niche offerings amid a declining resources sector and limited growth opportunities for indigenous businesses.
