DPW Holdings, Inc. (NYSE American: DPW) a diversified holding
company (“DPW,” or the “Company”) announced that its
global defense business, Gresham Worldwide, Inc. (“Gresham
Worldwide”), has acquired Relec Electronics Ltd.
(“Relec”), based in England. The transaction was structured
as a stock purchase under which Gresham Worldwide paid
approximately $4,000,000 with additional contingent cash payments
up to approximately $665,000 based on Relec’s future financial
performance. The transaction closed today.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20201130005823/en/
Relec, established in 1978, is an English supplier of power
conversion and display technology products in the industrial, rail
transportation and emerging electronic markets. Gresham Worldwide’s
English subsidiary, Gresham Power Electronics, has been designing
and manufacturing highly reliable power electronics for naval and
industrial markets for more than fifty years. The acquisition of
Relec enhances Gresham Worldwide’s presence in the U.K. and Europe
and considerably broadens its product portfolio, including
high-quality power conversion and display product offerings. This
strategic business combination provides Relec opportunities to
offer value-added services to its blue-chip customer base, while
enabling Gresham Power Electronics to expand into rail and other
industrial markets.
The acquisition is expected to be immediately accretive and
includes approximately $1.2 million of net tangible assets. Relec
recorded revenue of approximately $7 million and, excluding
one-time discretionary items, adjusted pretax income of
approximately $1.1 million for its fiscal year ended February 29,
2020. Like many other companies across the globe, the COVID-19
pandemic has put downward pressure on Relec’s financial results
since March 2020, which resulted in an approximate 20% decrease in
revenue for the six months ended August 31, 2020. However, based
upon a strong backlog of orders and Relec’s exceptional customer
relationships, the Company believes the recent decrease in revenue
will be short-lived and that, beginning in 2021, Relec will be well
positioned for solid, long-term financial performance.
Gresham Power Electronics and Relec will continue to operate as
stand-alone businesses, though they have established a joint
management committee. Peter Lappin, Managing Director and the Relec
management team will remain as employees of Relec at least
throughout the earnout period.
Jonathan Read, Gresham Worldwide’s CEO, stated, “This
combination provides a great opportunity for Relec and Gresham
Worldwide to benefit from the strengths of each organization. We
are thrilled that Peter Lappin and the Relec team will bring to
Gresham Worldwide the technical expertise, customer focus, quality
products and commitment to outstanding service that enabled them
build such a successful business.”
“Teaming these operations significantly increases the Gresham
Worldwide footprint the UK and Europe while broadening its
technology portfolio with high-quality power conversion and display
product offerings,” said Karen Jay, Managing Director at Gresham
Power Electronics Ltd “The combination of Relec with Gresham Power
provides scale, technical capabilities, and technology solution
offerings to drive growth in the UK and Europe.”
Peter Lappin said, “Everyone at Relec is looking forward to
becoming part of the Gresham Worldwide group. Joining forces will
provide Relec with additional resources to offer more value-added
services to our blue-chip customer base while increasing sales
coverage and market reach for our innovative supply chain partners.
Working with other Gresham Worldwide companies will also create
opportunities for Relec to increase sales of its innovative power
and display technology solutions into defense, marine, aerospace
and telecommunications markets.”
“We are very excited about the acquisition of Relec Electronics
as it provides new top-line revenue, a talented team and clear
synergies with Gresham Worldwide,” said Milton “Todd” Ault, III,
the Company’s CEO and Chairman.
For more information on DPW and its subsidiaries, the Company
recommends that stockholders, investors and any other interested
parties read the Company’s public filings and press releases
available under the Investor Relations section at
www.DPWHoldings.com or available at www.sec.gov.
About DPW Holdings, Inc.
DPW Holdings, Inc. is a diversified holding company pursuing
growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, the Company
provides mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial,
telecommunications, medical, and textiles. In addition, the Company
extends credit to select entrepreneurial businesses through a
licensed lending subsidiary. DPW’s headquarters are located at 201
Shipyard Way, Suite E, Newport Beach, CA 92663;
www.DPWHoldings.com.
About Gresham Worldwide
Gresham Worldwide, Inc. is a provider of high-quality,
ultra-reliable bespoke technology solutions for mission-critical
applications in the defense, medical and telecommunications
verticals. The four component companies under the leadership of
CEO, Jonathan Read, are Microphase Corporation, Enertec Systems
2001 Ltd., Gresham Power Electronics Ltd. and Relec Electronics
Ltd. Each has decades of experience serving global defense and
technology markets. Gresham Worldwide operates with a global
footprint with headquarters in Phoenix, Arizona, an office in
Washington D.C. and design and operations centers in Shelton,
Connecticut, Salisbury, U.K., Wareham, U.K. and Karmiel,
Israel.
About Relec
Relec Electronics Ltd was established in 1978 with the aim of
providing specialist power conversion and display products to
support professionals in the electronics industry. Relec’s
aerospace background means it consistently and meticulously
delivers high performance and robust power and display solutions.
Relec exerts its utmost effort to customize a product or a feature
to achieve optimum performance and service delivery. Relec
continues to be guided by this philosophy and currently operates in
specific fields, specializing in AC-DC Power Supplies, DC-DC
Converters, Displays and EMC Filters.
Forward-Looking Statements
This press release contains “forward looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.DPWHoldings.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201130005823/en/
IR@DPWHoldings.com or 1-888-753-2235
Ault Global (AMEX:DPW)
Historical Stock Chart
From Apr 2024 to May 2024
Ault Global (AMEX:DPW)
Historical Stock Chart
From May 2023 to May 2024