Pioneer Power Solutions Enters Wind Energy Business With Purchase of Select AAER Assets
Pioneer Power Solutions, Inc. (PPSI), a manufacturer of liquid filled, encapsulated and ventilated transformers for utility, industrial and commercial applications, announced that it has executed an agreement to acquire certain assets of AAER Inc. (AAER) based in Quebec, Canada. AAER is a manufacturer of high technology megawatt-sized wind turbines.
Under terms of the agreement, Pioneer will acquire most of the Inventory, Capital Assets, Intangible Assets and Intellectual Property of AAER for CDN $450,000 (approximately US $431,500) in cash. The acquisition is expected to close June 7, 2010. Upon closing, AAER will be renamed Pioneer Wind Energy Systems, Inc., a wholly-owned subsidiary of PPSI.
Nathan Mazurek, Chairman and Chief Executive Officer of Pioneer, commented, "We are excited to enter the burgeoning wind turbine business with the acquisition of these strategic assets. Offering these alternative energy systems is a natural extension of our business as we become a leading provider of diverse power systems in North America. We will address the smaller wind projects where orders are expected to be in range of 1-5 turbines. Our goal is to reach an operating run rate of delivering between 50-100 turbines per year within the first three years. We will be able to leverage the existing sales efforts with those of PPSI and Jefferson Electric which we recently acquired. Offering wind energy systems will further diversify our customer base, revenue stream and growth potential."
