Advanced Energy Adds to Its Portfolio of Growth Opportunities With Acquisition of AEG Power Control Modules Product Line
January 27 2014 - 7:04PM
Advanced Energy Industries, Inc. (Nasdaq:AEIS) today announced it
has acquired the assets of AEG Power Solutions GmbH line of Power
Control Modules. Owned by 3WPower (ticker symbol on Frankfurt Stock
Exchange: 3W9), AEG PS's Power Control Modules business is the
second largest supplier in its served market. It is comprised of
the Thyro-Family of products and accessories and serves numerous
power control applications in different industries ranging from
materials thermal processing through chemical processing, glass
manufacturing and numerous other general industrial power
applications. AEG's advanced Power Control Modules provide
precision power control through advanced communication and control
algorithms. The Thyro-Family product line offers clean and
controlled power combined with extensive technical and applications
support. This acquisition is expected to accelerate Advanced
Energy's revenue and profitability over time.
"Consistent with our strategy to diversify our Thin Film
industrial applications and outsource manufacturing, the
acquisition of AEG's Thyro Family today adds yet another product
line to our strong and growing power conversion portfolio," said
Yuval Wasserman, President of Thin Films. "These products
complement our existing offerings by allowing us to enter new power
control applications and grow our presence in precision power
delivery markets where precise measurement and control are
required."
Under the agreement, Advanced Energy has acquired the Power
Control Module product line for €22 million in cash plus a one year
earn-out of up to €1 million, payable in cash, if the EBITDA target
for the product line is met in the first 12 months after
closing.
Forward-Looking Language
Certain statements in this press release, information discussed
on the earnings conference call concerning the acquisition of the
Power Control Modules product line, the future business, operating
and financial condition of the company and the Power Control
Modules product line, including expectations regarding the markets
for precision power control, entry into such markets, revenues,
earnings, operating expenses, operating income, growth,
profitability, restructuring costs, accretion, the EBITDA target
for the earn-out, return of shareholder value, aspirational goals
and expected synergies for future periods, and strategic goals and
any future strategic actions, are forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements are subject to known and unknown risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied by such statements. Such risks and
uncertainties include, but are not limited to: the successful
integration of operations of the Power Control Modules product line
and associated restructuring costs; the hiring and retention of key
employees; expectations surrounding the benefits of the Power
Control Modules product lines; the total available market for
precision power control worldwide; expectations regarding sales of
the Power Control Modules product line; expectations surrounding
Power Control Modules product line contract manufacturing model; as
well as the effects of global macroeconomic conditions upon demand
for such products. These and other risks are described in Advanced
Energy's Form 10-K, Forms 10-Q and other reports and statements
filed with the Securities and Exchange Commission. These reports
and statements are available on the SEC's website at www.sec.gov.
Copies may also be obtained from Advanced Energy's website at
www.advancedenergy.com or by contacting Advanced Energy's investor
relations at 970-407-6555. Forward-looking statements are made and
based on information available to the company on the date of this
press release. As reiterated previously, aspirational goals and
targets discussed on conference calls or in the presentation
materials should not be interpreted in any respect as guidance. The
company assumes no obligation to update the information in this
press release.
About Advanced Energy
Advanced Energy (Nasdaq:AEIS) is a global leader in innovative
power and control technologies for high-growth, thin-film
manufacturing and solar-power generation. Advanced Energy is
headquartered in Fort Collins, Colorado, with dedicated
support and service locations around the world. For more
information, go to www.advanced-energy.com.
ABOUT 3W POWER/AEG POWER SOLUTIONS
AEG Power Solutions (AEG PS) Group is a global provider of power
electronics systems and solutions for all industrial and demanding
commercial power requirements offering one of the most
comprehensive product and service portfolios in the area of
uninterruptible power supply and power management. Thanks to its
distinctive expertise bridging both AC and DC power technologies
and spanning the worlds of both conventional and renewable energy,
the company creates innovative solutions for next generation
distributed power generation.
AEG Power Solutions Group is the sole subsidiary of the holding
company 3W Power S.A. (WKN A0Q5SX / ISINLU0953526265), based in
Luxembourg. The Group is headquartered in Zwanenburg in the
Netherlands. The shares of 3W Power are admitted to trading on
Frankfurt Stock Exchange (ticker symbol: 3W9).
CONTACT: Danny Herron
Advanced Energy Industries, Inc.
970.407.6570
danny.herron@aei.com
Annie Leschin
Advanced Energy Industries, Inc.
970.407.6555
ir@aei.com
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