Solomon Tech Signs Letter of Intent to Acquire Unipower
Solomon Technologies, Inc. announced that it has signed a letter of intent to acquire Unipower Corp., a manufacturer of power supplies and related equipment for telecom, datacom, network equipment and industrial applications.
The letter of intent contemplates that Solomon, through an acquisition subsidiary, will purchase all of the capital stock of Unipower for an undisclosed amount of cash with the purchase price subject to increase or decrease based on changes in Unipower’s net assets through closing. The transaction is subject to the negotiation and execution of a definitive purchase agreement and the satisfaction of various closing conditions including a due diligence investigation. While no assurances can be given as to when the acquisition may close, Solomon currently anticipates that the acquisition will close in the latter half of 2007.
"The acquisition of Unipower is the next step in achieving our growth and profitability goals for 2007," said Solomon CEO, Gary G. Brandt. "We expect that Unipower will be a major component of our expanding power electronics business and will provide significant synergies with our Technipower operations and our pending acquisition of Deltron. The combination of Technipower’s high power, high reliability product lines in conjunction with Unipower’s and Deltron’s precision power products should provide expanded cross selling opportunities, open new market channels and broaden our system capabilities. It should also enhance our efforts in the Motive Power division as a result of the substantial increase in technical/engineering resources available in the company."
"We anticipate that with the closing of the Unipower and Deltron acquisitions we will have exceeded our 2007 annualized sales goal of $25 million and expect that operating income will increase substantially and cash flow will be positive," continued Brandt. "Additionally, we believe that the management team at Unipower will add significant depth to our Power Electronics operations and position us well for achieving our sales and profitability goals for 2008 and beyond."