Solomon Signs Definitive Agreement to Acquire Deltron
Solomon Technologies, Inc. announced that it has signed a definitive purchase agreement to acquire Deltron, Inc. (Deltron), a North Wales, Pennsylvania based manufacturer of power supplies and related equipment with manufacturing operations in Reynosa, Mexico.
The purchase agreement provides for Solomon to acquire specific assets and liabilities of Deltron’s Pennsylvania operations and all of the stock of Deltron’s Mexican manufacturing facility, for an undisclosed amount in cash, subject to increase or decrease based on changes in Deltron’s working capital between October 31, 2006 and the closing date. Solomon will assume Deltron’s trade payables and its accrued expenses as part of the transaction. The transaction is subject to the satisfaction of various closing conditions including satisfactory due diligence investigations and the negotiation and execution of agreements with certain Deltron personnel. Solomon anticipates that the acquisition will be consummated within 45 days.
"This is another step in our acquisition of assets and building critical mass within our Power Electronics Division," said Gary G. Brandt Chief Executive Officer of Solomon. "In addition to boosting consolidated revenues, the combination of Deltron’s low power precision products with our existing high power, high reliability product lines will permit us to expand our cross selling efforts and broaden our systems capabilities. In addition, we expect to gain significant cost advantages across all operations from the addition of Deltron’s Mexican manufacturing capabilities. We expect to maintain some Deltron operations in Pennsylvania and add resources in Mexico as the business grows."
Brandt continued, "The acquisition of Deltron is another key milestone in Solomon’s strategy of growing the business through acquisition of complementary assets, and most importantly, it is consistent with our broader view of the increasing importance of power electronics technologies to the high efficiency/alternative energy markets. The addition of Deltron, combined with other contemplated acquisitions, puts us on track to achieve our goal of annualized sales of $25 million by the end of this year."