Advanced Energy to Acquire SL Power Electronics
The acquisition significantly expands Advanced Energy’s market reach in both the medical and industrial sectors, while broadening its influence in the lighting arena.
In a bid to strengthen its existing portfolio of medical and industrial power solutions, Advanced Energy on April 4 announced its entry into a definitive agreement to acquire SL Power Electronics, a market-leading supplier of differentiated power conversion solutions for medical and advanced industrial applications.
Advanced Energy is acquiring SL Power from Steel Partners Holdings, to which the latter is currently a subsidiary. Per SL Power’s separate announcement, released April 1, the transaction is expected to close within 30 days. Until that point, the companies will continue to operate as wholly separate entities.
Advanced Energy’s Background
Advanced Energy is an American multinational manufacturer of power conversion, measurement, and control solutions for mission-critical applications and processes. The company’s product portfolio includes high-voltage power supplies and amplifiers, low-voltage power supplies, remote plasma sources, gas sensors, silicon controlled rectifier (SCR) power controllers, as well as temperature measurement and electrostatic products.
Advanced Energy’s executive offices are based in Denver, Colorado. Image used courtesy of CBRE
The company released its latest new product series, a line of hot-swappable power supplies for industrial, horticultural, and commercial lighting systems, in mid-February. EE Power covered the supplies in depth early last month.
SL Power Electronics’ Scope
SL Power has been a player in the power industry for more than 60 years, and now targets three markets: medical, LED and industrial.
SL Power targets the medical and industrial markets; Here, the SLB300, an upcoming open frame power supply. Image used courtesy of SL Power Electronics
The company’s medical power offerings are deployed in a range of settings, from surgical devices to patient monitoring and home healthcare solutions; Its LED drivers increasingly power horticultural lighting systems; And in the power space, it targets precision, with integrated power solutions for use in robotics, photonics, and testing equipment, among others.
Agreement Terms and Strategic Benefits
Advanced Energy will pay a base purchase price of $144.5 million, on a cash-free, debt-free basis. This is subject to the terms of the Stock Purchase Agreement and a customary adjustment for working capital as of the closing. Advanced Energy’s board of directors has approved the transaction and the company intends to finance the transaction with currently available cash.
For Advanced Energy, the integration of its product lines with those of SL Power strengthens its position in the power conversion market. Per the company’s release, the acquisition expands its market reach in industrial and medical power supplies by over $400 million. Beyond its bread-and-butter, Advanced Energy also sees the move as broadening its influence in the speciality lighting and test and measurement spaces.
For SL Power, which recently struck a separate deal with West Electronics to promote its products in Southern and Baja California, Arizona, New Mexico, and southern Nevada, the move will enable it to offer its customers even broader access to its robust power solutions.