Under the agreement, iGo will be the exclusive marketer and distributor of PureEnergy’s rechargeable alkaline batteries to retailers worldwide (excluding China) with non-exclusive distribution rights in Africa.
Simultaneously, iGo has signed 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.
Under the agreement with Premier Tech Home & Garden, iGo purchased current inventory to support sales to these accounts, which currently represent approximately $2m in annualized revenue.
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 said it will initially offer rechargeable alkaline batteries in AA and AAA sizes along with multiple charging solutions, such as wall outlet and USB chargers.
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 and if the company achieves its annual minimum sales targets, it will have the option to extend the agreement for a total of 15 years.
