Attached files
| file | filename |
|---|---|
| 8-K - PIONEER POWER SOLUTIONS, INC. | e606893_8k-pioneer.htm |
| EX-4.1 - PIONEER POWER SOLUTIONS, INC. | e606893_ex4-1.htm |
| EX-2.1 - PIONEER POWER SOLUTIONS, INC. | e606893_ex2-1.htm |
| EX-10.6 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-6.htm |
| EX-10.7 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-7.htm |
| EX-10.3 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-3.htm |
| EX-10.9 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-9.htm |
| EX-10.1 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-1.htm |
| EX-10.8 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-8.htm |
| EX-10.4 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-4.htm |
| EX-10.2 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-2.htm |
| EX-10.5 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-5.htm |
| EX-10.11 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-11.htm |
| EX-10.12 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-12.htm |
| EX-10.10 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-10.htm |
| EX-10.13 - PIONEER POWER SOLUTIONS, INC. | e606893_ex10-13.htm |
EXHIBIT
99.1
Pioneer
Power Solutions Completes Acquisition of Jefferson Electric
Acquisition
Expected to Be Immediately Accretive; Significantly Broadens Pioneer’s Operating
and Product Profile
May 3,
2010
FORT LEE,
NJ -- 05/03/10 -- Pioneer Power Solutions, Inc. (OTCBB: PPSI) (“Pioneer”), a
manufacturer of liquid-filled electric transformers for utility, industrial and
commercial applications, today announced its acquisition of privately-held
Jefferson Electric, Inc. (“Jefferson”), a Wisconsin-based manufacturer and
supplier of dry-type transformers.
The
transaction, valued at approximately $10 million, includes a combination of
restricted stock and warrants issued to Mr. Thomas Klink, previously the sole
stockholder of Jefferson, as well as extending the term of Jefferson’s existing
credit facility. As a result of the acquisition, Jefferson will operate as a
wholly owned subsidiary of Pioneer and Mr. Klink will remain as Jefferson’s
President. Mr. Klink will also join Pioneer’s board of directors, expanding the
total number of directors to six. Jefferson recorded 2009 revenues of
approximately $20 million and is expected to be immediately accretive to
Pioneer’s earnings per share in 2010.
With over
90 years of operating history, Jefferson is a premier manufacturer and supplier
of low-voltage, dry-type transformers for commercial and industrial
applications. The company delivers its products through its nationwide network
of warehouse sales representatives and growing direct sales channel with
original equipment manufacturers (OEM) and in private label manufacturing. All
design, engineering, sales, executive management and related support functions
are performed by Jefferson’s 35 employees at its headquarters in Franklin,
Wisconsin. In addition, all of Jefferson’s manufacturing activities are
concentrated at its recently acquired facility in Reynosa, Mexico that employs
approximately 120 workers. Jefferson also maintains a centralized warehouse
location in Pharr, Texas, near its Mexico plant, enhancing Jefferson’s ease of
distribution to over 20 stocking locations and direct customers across the
U.S.
Nathan
Mazurek, Chairman and CEO of Pioneer, commented, “In terms of product portfolio,
geographic presence and channels of distribution, the acquisition of Jefferson
puts Pioneer in a very strong position as a balanced, high quality manufacturer
and supplier in our industry. The transaction exemplifies our growth strategy to
acquire companies with strengths in complementary market niches not already
served by us, while also allowing us to quickly expand the scale and scope of
our product line and distribution channels. We anticipate this collaboration
will have an immediate positive impact on both companies’ profitability and
growth prospects.”
Mr.
Mazurek continued, “We are also delighted to welcome Mr. Klink to our Board of
Directors. He brings with him a wealth of experience and in-depth industry
knowledge that will be greatly beneficial to advancing Pioneer’s long term
vision. We look forward to working with him and the whole Jefferson
team.”
About
Pioneer Power Solutions, Inc.
Through
its subsidiaries, Pioneer has been engaged in the design, development and
manufacturing of liquid-filled power, distribution and specialty electric
transformers for over 50 years. Pioneer serves customers in a variety of
industries with particular emphasis on the electric utility, industrial and
commercial markets in Canada and the United States. To learn more about Pioneer,
please visit our website at www.pioneerpowersolutions.com.
About
Jefferson Electric, Inc.
Jefferson
has been a pioneer and innovator of magnetic products since 1915, enjoying a
rich tradition of supplying the automotive, lighting, elevator, communication,
transportation, power quality, government and industrial markets. That tradition
continues today with high quality dry-type transformers and lighting ballasts
for commercial, industrial and OEM customers. To find out more about Jefferson
c, please visit www.jeffersonelectric.com.
Forward-looking
Statements:
This
press release contains certain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995, as amended. Such
statements may be preceded by the words “intends,” “may,” “will,” “plans,”
“expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,”
“believes,” “hopes,” “potential” or similar words. Forward-looking statements
are not guarantees of future performance, are based on certain assumptions and
are subject to various known and unknown risks and uncertainties, many of which
are beyond the company’s control, and cannot be predicted or quantified and
consequently, actual results may differ materially from those expressed or
implied by such forward-looking statements. Such risks and uncertainties
include, without limitation, risks and uncertainties associated with: (i)
fluctuations in foreign currency exchange rates; (ii) the loss of significant
customers; (iii) increases in the prices of raw materials; (iv) development of
new products and service offerings; (v) the company’s ability to integrate
acquisitions; (vi) the effectiveness, profitability, and marketability of the
company’s current and prospective products and services; (vii) the impact of
current, pending, or future legislation and regulation on the company’s
industry; and (viii) the impact of competitive products, services, pricing or
technological changes. More detailed information about the company and the risk
factors that may affect the realization of forward-looking statements is set
forth in the company’s filings with the Securities and Exchange Commission,
including the company’s Form 10-K filed with the SEC on April 15, 2010.
Investors and security holders are urged to read this document free of charge on
the SEC’s web site at www.sec.gov. The company does not undertake to publicly
update or revise its forward-looking statements as a result of new information,
future events or otherwise.
Contact:
Howard
Gostfrand
American
Capital Ventures
305.918.7000
Email
Contact