FORT COLLINS, Colo., Jan. 27, 2014 (GLOBE NEWSWIRE) -- 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.
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).