Pioneer Completes Acquisition of Power Systems Solutions, Inc.
Forms new Critical Power business unit, entering the market for backup power and distributed generation products
FORT LEE, N.J. and MINNEAPOLIS, March 11, 2013 /PRNewswire/ — Electrical transformer manufacturer Pioneer Power Solutions, Inc. (OTCBB: PPSI) (“Pioneer” or the “Company”) and paralleling switchgear provider Power Systems Solutions, Inc. (“PSSI”), announced that the acquisition of PSSI by Pioneer’s wholly owned subsidiary, Pioneer Critical Power Inc., was completed on March 6, 2013.
Founded in 1997, PSSI is a supplier of highly specified and engineered paralleling switchgear and generator controls for the electrical power generation industry. The company provides customers with on-site power controls, switchgear and remote monitoring capabilities to maintain reliable emergency standby power at their critical sites such as data centers, hospitals, industrial facilities, office complexes and other sites where emergency backup power sources are required. In addition to protecting customer operations from the consequences of power outages, PSSI also offers utility paralleling and soft loading equipment. These solutions enable on-site customers and utility companies to parallel multiple generators with the utility power grid for peakshaving and demand/load side management of electrical power.
Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, commented, “This transaction provides Pioneer a new avenue for investment in attractive, fast-growing markets – backup power and distributed generation. Although PSSI’s revenue contribution will not be material to us initially, over time we expect it to bring Pioneer increased revenue diversity and opportunities with existing customers, while elevating the technical sophistication of our portfolio with new high value products.”
Mr. Mazurek continued, “We are very pleased that George Moothedan, founder of PSSI, has agreed to serve as General Manager of Pioneer Critical Power Inc. With over 300 completed projects on his track record, George and his team bring Pioneer immediate credibility in the marketplace and will be a critical leadership resource in transitioning existing customers and executing our investment strategy for this segment of our electrical business.”
George Moothedan, commented, “Becoming part of the Pioneer family eliminates what I saw as the main obstacle inhibiting our growth over the last few years. With Pioneer’s financial resources and full commitment, PSSI now has the means to serve the needs of our customers more comprehensively and competitively, as well as the ability to engineer and manufacture larger project opportunities. I sincerely want to thank all our customers, trade partners and employees for their loyal support in helping us advance to the next stage in our development.”
About Pioneer Power Solutions, Inc.
Pioneer Power Solutions, Inc. is a manufacturer of specialty electrical equipment and provides through its four operating subsidiaries, Pioneer Transformers Ltd., Jefferson Electric, Inc., Bemag Transformer Inc. and Pioneer Critical Power Inc., a broad range of custom-engineered and standardized solutions for applications in the utility, industrial and commercial segments of the electrical transmission and distribution industry. The Company is headquartered in Fort Lee, New Jersey and operates from seven additional locations in the U.S., Canada and Mexico for manufacturing, centralized distribution, engineering, sales and administration. To learn more about Pioneer, please visit our website at www.pioneerpowersolutions.com.
Safe Harbor Statement:
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 expand its business through strategic acquisitions, (ii) the Company’s ability to integrate acquisitions and related businesses, (iii) the fact that many of the Company’s competitors are better established and have significantly greater resources, and may subsidize their competitive offerings with other products and services, which may make it difficult for the Company to attract and retain customers, (iv) the Company’s dependence on Hydro-Quebec Utility Company and Siemens Industry, Inc. for a large portion of its business, and the fact that any change in the level of orders from Hydro-Quebec Utility Company or Siemens Industry, Inc. could have a significant impact on the Company’s results of operations, (v) the potential loss or departure of key personnel, including Nathan J. Mazurek, the Company’s Chairman, President and Chief Executive Officer, (vi) the fact that fluctuations between the U.S. dollar and the Canadian dollar will impact the Company’s revenues, (vii) the Company’s ability to generate internal growth, (viii) market acceptance of existing and new products, (ix) operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material, labor or overhead cost increases, interest rate risk and commodity risk, (x) restrictive loan covenants or the Company’s ability to repay or refinance debt under its credit facilities that could limit the Company’s future financing options and liquidity position and may limit the Company’s ability to grow its business, (xi) general economic and market conditions in the electrical equipment, power generation, commercial construction, industrial production, oil and gas, marine and infrastructure industries, (xii) the impact of geopolitical activity on the economy, changes in government regulations such as income taxes, climate control initiatives, the timing or strength of an economic recovery in the Company’s markets and the Company’s ability to access capital markets, (xiii) the fact that unanticipated increases in raw material prices or disruptions in supply could increase production costs and adversely affect the Company’s profitability, (xiv) the fact that the Company’s Chairman controls a majority of the Company’s combined voting power, and may have, or may develop in the future, interests that may diverge from yours and (xv) the fact that future sales of large blocks of the Company’s common stock may adversely impact the Company’s stock price. 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 March 30, 2012 and its Quarterly Reports on Form 10-Q. 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.
SOURCE Pioneer Power Solutions, Inc.