Power-One, Inc. (NASDAQ:PWER) has signed an agreement to purchase the Power Electronics Group of Magnetek, Inc. (NYSE:MAG). Power-One will acquire Magnetek’s Power Electronics Group for $71.7 million in cash and assumption of approximately $16.7 million in debt. The transaction is expected to close by the end of October.
“The combination of Power-One and Magnetek’s Power Electronics Group brings together two businesses with considerable expertise in delivering innovative solutions to the expanding digital power management market,” said Bill Yeates, Chief Executive Officer of Power-One. “Not only is our technology complementary in many respects, but the addition of the Power Electronics Group’s R&D success and design capabilities will provide our customers with a broader and more powerful set of solutions while allowing us to further address the growing needs within the industry.”
“The divestiture of Magnetek’s embedded power-electronics business accelerates our strategy of focusing on digital power and motion control systems for material handling, elevators and mining, as well as large commercial alternative energy applications,” said Thomas Boren, Magnetek’s Chief Executive Officer. “We believe that it also will enable us to pay off Magnetek’s debt, make major contributions to the Company’s pension plan, increase Stockholders’ Equity, cut corporate overhead, boost profit margins and bring more of those profits to the bottom line.”
About Magnetek:
Headquartered in Chatsworth, CA, Magnetek is America’s largest supplier of digital motion-control systems for industrial cranes and hoists and the world’s largest independent builder of digital motion-control systems for elevators. The Company is a leading builder of power conditioners for commercial fuel cells and multi-megawatt power inverters for large wind generators, as well as a provider of new-generation digital drive systems for coal mining.
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