Pioneer Closes Sale of Transformer Business
Fort Lee, N.J., Aug. 22, 2019 /PRNewswire/ -- Pioneer Power Solutions, Inc. (Nasdaq: PPSI) ("Pioneer" or the "Company"), a company engaged in the manufacture, sale and service of electrical transmission, distribution and on-site power generation equipment, today announced that it has completed the sale of its liquid filled and dry type transformer businesses to Mill Point Capital, a middle-market private equity firm, for a base purchase price of $68 million. The purchase price consisted of $60.5 million of cash and the issuance of two subordinated promissory notes to Pioneer Power in the aggregate principal amount of $7.5 million. The purchase price is subject to customary post-closing adjustments, such as working capital.
Pursuant to the transaction, Pioneer sold all of Pioneer Transformers Ltd. and the companies comprising its Dry Type Transformer Group, which included Jefferson Electric, Inc., Bemag Transformer Inc. and Harmonics Limited LLC.
Nathan Mazurek, Pioneer's Chairman and Chief Executive Officer, said, "Selling this portion of our business for approximately 1.5 times our current market capitalization is an important step in creating shareholder value. We are evaluating various options for the proceeds, including returning capital to shareholders and strategic M&A. We also continue to hold two viable businesses, and we expect to take steps to improve financial performance of these two entities in the near-term. In addition, we retain our Nasdaq listing and a sizeable position of 1.75 million shares and warrants to purchase an additional 1 million shares of CleanSpark, Inc. (OTC: CLSK)."
Pioneer retains:
- Pioneer Critical Power, a provider of generators, specialized enclosures, automatic transfer switches, uninterruptible power supplies, batteries, remote monitoring solutions, and RICE/NESHAP modifications, as well as a full suite of engine generator maintenance services. Service customers include several national retailers and cellular service providers.
- Pioneer Custom Electrical Products, a supplier of highly specified and engineered solutions for the electrical power generation industry with special focus on the distributed generation and data center markets.
About Pioneer Power Solutions, Inc.
Pioneer Power Solutions, Inc. manufactures, sells and services a broad range of specialty electrical transmission, distribution and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. The Company's principal products and services include custom low and medium voltage switchgear and engine-generator sets and controls, complemented by a national field-service organization to maintain and repair power generation assets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.
Contact:
Brett Maas, Managing Partner
Hayden IR
(646) 536-7331
Source Pioneer Power Solutions, Inc.
Web Site: http://www.pioneerpowersolutions.com
