Viva International Intends to Acquire Private Battery Manufacturing & Distribution Company
Viva International, Inc. announced this morning that it is in negotiations for the acquisition of Advanced Energy Products (Advanced) of Furlong, Pennsylvania and has issued a letter of intent to purchase the assets and ongoing business of Advanced in a transaction estimated to approximate $300,000 and which is subject to customary adjustments resulting from an audit and inspection of the assets, books and records of Advanced Energy.
In November of 2006, Viva announced that it planned to develop and market a line of Lithium Ion (LI) aviation batteries. LI batteries are currently being used on advanced airframes such as the Lockheed Martin F-22 and General Atomics Predator Drone. Current projections are being made for utilization of LI batteries on the next generation of airliners including the Boeing 777. The benefits of LI batteries are currently being validated in military application and include weight, space and power. Previous internal estimates of first year market potential revenues have been pegged at approximately $12 million.
Calvin Humphrey, Viva’s CEO and Chairman, commented, "I am anxious to bring Advanced Energy into our organization of companies. I visualize Advanced providing us with manufacturing capability and 'in place' distribution structures. This will help us immensely is jump starting our lithium battery development program while obtaining a small, but profitable, company having excess manufacturing capacity. Together with the Flight Test Associates management team of James Paquette and Alex Wolfe we see the acquisition of Advanced as a major part of the lithium battery development program."