Advanced Energy Industries, Inc. today announced it has acquired the assets of AEG Power Solutions GmbH line of power control modules. 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. The power control modules activity represents annual revenues of €14 million. AEG Power Solutions has entered into a long term manufacturing agreement to produce the modules for Advanced Energy Industries at its principle factory in Warstein-Belecke, Germany.
Owned by 3WPower 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.”
AEG Power Solutions will continue to focus on its core areas of competitive strength in delivering high-quality power systems and solutions for infrastructure, industrial and demanding commercial applications, and advanced solutions for renewable energies and next generation distributed power generation. In this perspective, power control modules are non-core to the Group. “With Advanced Energy Industries we found a strong and credible partner who will further develop the power control modules business", said Jeffrey Casper, CRO and member of the Board of Directors. "This agreement is an important step to the ongoing reorganization of the AEG Power Solutions Group."