Pioneer Power Solutions to sell transformer business for $65.5 M

US: Pioneer Power Solutions Inc. has agreed to sell its transformer divisions, including Franklin-based Jefferson Electric Inc., to New York private equity firm Mill Point Capital for $65.5 M.

The transaction is expected to close in the second half of the year.

The carve-out transaction includes all the assets and liabilities of Pioneer Transformers Ltd. and Pioneer Dry Type Transformer Group, which contains Jefferson Electric, Bemag Transformer Inc. and Harmonics Ltd. LLC. The transaction is structured as $60.5 M in cash, with a $5 M seller’s note. Mill Point executive partner Antony Besso will become chairman of Pioneer Transformers.

Pioneer Power will continue to operate its remaining divisions, Pioneer Critical Power and Pioneer Custom Electrical Products. PCP distributes generators and related products, and provides engine generator maintenance services. PCEP supplies custom products used in electrical power generation, including data centres. Pioneer Power also will keep 1.75 M shares and warrants to purchase another 1 M shares in CleanSpark Inc., to which it recently sold subsidiary Pioneer Critical Power Inc., which includes low-voltage switchgear and automatic transfer switch designs.

Source: Biz Times