Pioneer Announces Sale of its Pioneer Custom Electrical Products, LLC Business Unit, Including E-Bloc
Pioneer Power Solutions (PPSI) has sold its Pioneer Custom Electrical Products (PCEP) business unit to Mill Point Capital for $50 million in cash and equity, including the assumption of certain liabilities. The deal comprises $48 million in cash and $2 million in equity. Mill Point is combining PCEP with Jefferson Electric to form Voltaris Power , a new electrical power solutions platform. Pioneer will retain a minority equity stake in Voltaris and contribute 4% of its equity in Pioneer Investment This divestiture aligns with Pioneer's 2022 strategic transformation, focusing the company on its Critical Power and eMobility business.
Pioneer Power Solutions (PPSI) ha venduto la sua unità di business Pioneer Custom Electrical Products (PCEP) a Mill Point Capital per 50 milioni di dollari in contanti e capitale, inclusa l'assunzione di alcune passività. L'accordo comprende 48 milioni di dollari in contanti e 2 milioni di dollari in capitale. Mill Point sta combinando PCEP con Jefferson Electric per formare Voltaris Power, una nuova piattaforma di soluzioni energetiche elettriche. Pioneer manterrà una partecipazione azionaria minoritaria in Voltaris e contribuirà con il 4% del suo capitale in Pioneer Investment. Questa dismissione è in linea con la trasformazione strategica di Pioneer del 2022, concentrando l'azienda sulla sua attività di Critical Power e eMobility.
Pioneer Power Solutions (PPSI) ha vendido su unidad de negocio Pioneer Custom Electrical Products (PCEP) a Mill Point Capital por 50 millones de dólares en efectivo y capital, incluyendo la asunción de ciertas obligaciones. El acuerdo comprende 48 millones de dólares en efectivo y 2 millones de dólares en capital. Mill Point está combinando PCEP con Jefferson Electric para formar Voltaris Power, una nueva plataforma de soluciones de energía eléctrica. Pioneer mantendrá una participación accionaria minoritaria en Voltaris y contribuirá con el 4% de su capital en Pioneer Investment. Esta desinversión está alineada con la transformación estratégica de Pioneer de 2022, enfocando a la empresa en su negocio de Critical Power y eMobility.
Pioneer Power Solutions (PPSI)는 Pioneer Custom Electrical Products (PCEP) 사업부를 Mill Point Capital에 현금 및 주식으로 5천만 달러에 매각했습니다. 이 거래에는 4천8백만 달러의 현금과 2백만 달러의 주식이 포함됩니다. Mill Point는 PCEP를 Jefferson Electric과 결합하여 Voltaris Power라는 새로운 전력 솔루션 플랫폼을 형성할 예정입니다. Pioneer는 Voltaris의 소수 주식 보유를 유지하고 Pioneer Investment에서 자본의 4%를 기여할 것입니다. 이 매각은 2022년 Pioneer의 전략적 변화를 반영하며 회사의 Critical Power 및 eMobility 사업에 집중하고 있습니다.
Pioneer Power Solutions (PPSI) a vendu sa division Pioneer Custom Electrical Products (PCEP) à Mill Point Capital pour 50 millions de dollars en espèces et en actions, y compris l'hypothèque de certaines dettes. L'accord comprend 48 millions de dollars en espèces et 2 millions de dollars en actions. Mill Point combine PCEP avec Jefferson Electric pour former Voltaris Power, une nouvelle plateforme de solutions énergétiques électriques. Pioneer conservera une participation minoritaire dans Voltaris et contribuera avec 4% de son capital dans Pioneer Investment. Cette cession s'aligne sur la transformation stratégique de Pioneer en 2022, en concentrant l'entreprise sur ses activités de Critical Power et d'eMobility.
Pioneer Power Solutions (PPSI) hat seine Geschäftseinheit Pioneer Custom Electrical Products (PCEP) für 50 Millionen Dollar, einschließlich der Übernahme bestimmter Verbindlichkeiten, an Mill Point Capital verkauft. Der Deal umfasst 48 Millionen Dollar in bar und 2 Millionen Dollar in Eigenkapital. Mill Point kombiniert PCEP mit Jefferson Electric, um Voltaris Power, eine neue Plattform für elektrische Energielösungen, zu gründen. Pioneer wird eine Minderheitsbeteiligung an Voltaris behalten und 4% seines Eigenkapitals in Pioneer Investment einbringen. Diese Veräußerung steht im Einklang mit der strategischen Transformation von Pioneer im Jahr 2022, die das Unternehmen auf sein Geschäft mit Critical Power und eMobility fokussiert.
- Sale of PCEP unit for $50 million strengthens balance sheet
- Strategic focus on higher-potential Critical Power and eMobility business
- Retained minority equity stake in new Voltaris platform provides ongoing upside potential
- Additional capital available for core business development
- Loss of revenue stream from PCEP business unit
- Reduction in business diversification
Insights
The
This divestment streamlines Pioneer's focus on its Critical Power and eMobility segments, potentially improving operational efficiency and growth prospects. The cash injection significantly strengthens the balance sheet, providing capital for strategic investments in these core areas. The retained equity stake and board representation in Voltaris maintains strategic alignment and potential synergies between the companies.
This strategic realignment positions Pioneer to better capitalize on the expanding EV charging and critical power infrastructure markets. The transaction creates two focused entities: Pioneer concentrating on mobile EV solutions and critical power, while Voltaris combines PCEP with Jefferson Electric to address traditional power infrastructure needs. The deal timing aligns with accelerating grid modernization and EV adoption trends, supported by federal infrastructure spending.
The formation of Voltaris by Mill Point indicates growing private equity interest in the electrical infrastructure sector, particularly in businesses supporting grid modernization and electrification initiatives. This transaction could catalyze further consolidation in the fragmented electrical equipment market as companies seek scale and complementary capabilities.
Total Consideration of
Management to Host Investor Conference Call at 4:30 pm ET on October 30, 2024
PCEP is the Company’s Electrical Infrastructure business, which provides energy solutions that allow users to effectively and efficiently protect, control, transfer, monitor and manage their electrical energy usage and requirements. PCEP markets many of these solutions under the “E-Bloc” brand.
In a separate press release, Mill Point announced the formation of Voltaris Power LLC (“Voltaris”), an electrical power solutions platform created by acquiring two distinct entities, PCEP and Jefferson Electric, in two independent transactions. Mill Point expects the combination of PCEP and the Jefferson Electric transformer business to allow Voltaris to more effectively serve electric power end markets that are at the heart of the energy transition and re-electrification of America. Pioneer will also receive a minority equity stake in Voltaris as part of the transaction.
Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, commented, “The divestiture of our E-Bloc business is another critical step forward in the strategic transformation process we initiated in 2022. Pioneer is now solely focused on the growth of our Critical Power and eMobility business to fuel its larger potential. With additional capital we are well-positioned to continue to advance innovative solutions that address the growing grid gap challenges across the
“We are confident that as part of the new Voltaris platform, the PCEP team will continue to build the business as a leader in the rapidly deployable microgrid, EV charging infrastructure, and unit substations. We expect to continue to collaborate on solutions and combine technologies where they benefit mutual growth and are very pleased to be significant equity participants in this new electrical equipment platform.”
Key Terms of the Agreement
The sale includes a total cash consideration of
Conference Call
Management will host a conference call at 4:30 p.m. Eastern Time on Wednesday, October 30, 2024, to discuss the transaction announced today and Pioneer’s first half of 2024 financial results with the investment community.
Anyone interested in participating should call 1-877-407-0789 if calling within
A replay will be available until Wednesday, November 13, 2024, which can be accessed by dialing 1-844-512-2921 if calling within
The call will also be accompanied live by webcast over the Internet and accessible at: https://viavid.webcasts.com/starthere.jsp?ei=1693199&tp_key=40e95ec5ff
About Mill Point Capital LLC
Mill Point Capital LLC is a private equity firm focused on control investments in lower-middle market companies across the Business Services, Industrials and IT Services sectors throughout
About Pioneer Power Solutions, Inc.
Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, refurbishment, service and distribution of electric power systems, distributed energy resources, power generation equipment and mobile EV charging solutions for applications in the utility, industrial and commercial markets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.
Forward-Looking Statements:
This press release contains “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) the Company’s ability to successfully operate its business after the divestiture of its E-Bloc business, (ii) the Company’s ability to successfully increase its revenue and profit in the future, (iii) general economic conditions and their effect on demand for electrical equipment, (iv) the effects of fluctuations in the Company’s operating results, (v) the fact that many of the Company’s competitors are better established and have significantly greater resources than the Company, (vi) the Company’s dependence on two customers for a large portion of its business, (vii) the potential loss or departure of key personnel, (viii) unanticipated increases in raw material prices or disruptions in supply, (ix) the Company’s ability to realize revenue reported in the Company’s backlog, (x) future labor disputes, (xi) changes in government regulations, (xii) the liquidity and trading volume of the Company’s common stock, (xiii) an outbreak of disease, epidemic or pandemic, such as the global coronavirus pandemic, or fear of such an event, (xiv) risks associated with litigation and claims, which could impact our financial results and condition, and (xv) the Company’s ability to maintain compliance with the continued listing requirements of the Nasdaq Capital Market.
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 Annual and Quarterly Reports on Form 10-K and Form 10-Q, respectively. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030205051/en/
Brett Maas, Managing Partner
Hayden IR
(646) 536-7331
brett@haydenir.com
Source: Pioneer Power Solutions, Inc.
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