Pioneer Power Solutions, Inc., a manufacturer of electrical transmission, distribution and on-site power generation equipment, has agreed to carve off its transformer business and sell it to a venture capital firm for $65 million. The deal includes the assets of the assets of Pioneer Transformers Ltd. and Pioneer Dry Type Transformer Group, which includes Jefferson Electric, Inc., Bemag Transformer Inc. and Harmonics Limited LLC. The companies make both liquid-filled and dry type transformers.
The buyer is Mill Point Capital, a middle-market private equity firm based in New York City. Pioneer Power, based in Fort Lee, NJ, will continue with its other business units principally Pioneer Critical Power which makes generators, specialized enclosures, automatic transfer switches and uninterruptible power supplies; and Pioneer Custom Electrical Products, a supplier of custom engineered solutions for electrical power generation particularly for distributed generation and data center markets.
“Our belief that our assets were worth more individually than the market valuation of our combined organization is validated by this transaction, wherein we will divest a portion of our business for approximately 1.5x our current market capitalization, while retaining two exciting businesses and our status as a publicly traded Nasdaq listed company,” commented Nathan Mazurek, Pioneer’s CEO. “Following the closing of this transaction, we plan to focus on streamlining and enhancing our Titan business in Minneapolis and our switchgear business in Los Angeles.”
For more info, see www.pioneerpowersolutions.com.