Power-One to Acquire Powec and Purchase Crane Telecommunications LineApril 02, 2000 by Jeff Shepard
Power-One Inc. (Camarillo, CA) announced two acquisitions today. The company has entered into a definitive agreement to acquire Norwegian-based Powec AS and has agreed to purchase the telecommunications product line from Crane Co. Crane has exclusive distribution rights for Powec's products in North, South and Central America, and extensive relationships with telecommunications equipment makers such as Motorola, Ericsson and Nokia US.
Powec has experienced fast growth recently and is shipping at an annualized rate of about $70.0 million, based on sales during the first three months of 2000. Powec's customers include Nokia, Vodafone, Ericsson, Eircom, Telia, Hong Kong Telecom, Telenor, Sonera and TeleDanmark.
Power-One will pay about $78.0 million for all the common stock of Powec. The consideration to be paid consists of about $70.0 million in cash and 140,340 shares of Power-One common stock. Power-One will also assume about $8.0 million in debt. The company is paying Crane about $14.0 million in cash.
"This is a very exciting acquisition for Power-One," stated Steve Goldman, CEO and chairman. "It further supports our strategic plan to grow our company by increasing our sales to higher-growth telecom customers, and strengthen our position as a global provider of choice for power. This acquisition positions Power-One as one of the few power supply companies that can service both the OEM equipment manufacturer and service provider segments of the telecom market on multiple continents. It greatly extends our capabilities as a global supplier of power conversion products needed to support the convergence of voice, data and video on the Internet."
"The acquisition of Powec is extremely synergistic to our recent acquisition of HC Power," observed Bill Yeates, president and COO of Power-One. "There is almost no overlap in product lines between the two companies. Powec's products are targeted at small- and medium-sized telecom installations and are perfect complements to the products from our HC Power Division that address larger telecom installations. Powec's European and Asian sales channels are extremely good complements to Power-One's North American telecom sales channels. The opportunities for cross-selling products to existing Power-One and Powec customers are tremendous."