Eltek and Power Conversion Products Sign Merger AgreementSeptember 10, 2000 by Jeff Shepard
Eltek (Drammen, Norway) and Power Conversion Products (PCP, Crystal Lake, IL) recently signed a merger agreement to create a company capable of competing in the global telecom power systems industry.The merger, structured by Eltek, issued shares in exchange for 100 percent of the shares in PCP. The issued shares will give the current owners of PCP approximately 40 percent of the merged company. The agreement is subject to approval of Eltek's general assembly, and is expected to be closed within a few weeks. PCP will be responsible for sales of all products within the Americas.Both companies had explored various possibilities. Ed Weil, founder and CEO of PCP, stated, "We have discussed many business opportunities over the past couple of years and concluded that Eltek was the ideal match." Morten Angelil, who will be CEO of the merged company, stated, "We have long been clear about our ambition to create a global leader in the telecom power systems industry. PCP is a perfect strategic fit to Eltek with similar products, and we can now truly serve global customers. Our two companies complement each other perfectly. Not only are we talking about a strategic fit in terms of markets, products and technology. We are also very similar when it comes to history, focus and company culture. These are also important prerequisites as we move forwards in attacking the growing world market as one strong company."William Crown, CEO of CC Industries, the largest owner of the merged company with approximately 30 percent of the shares, stated, "This merger provides both companies with the ability to better serve the growing global needs of the telecommunications services industry. PCP's customers are looking for power supply solutions in Europe and Asia while Eltek's customers now have a solution in the US."