Advanced Energy Completes the Acquisition of SL Power
26 April 2022 - 6:01AM
Business Wire
- Expands addressable market by over $400 million
- Broadens AE’s reach with complementary products and
customers
- Enhances strategy to grow in the industrial and medical
market
Advanced Energy Industries, Inc. (Nasdaq: AEIS) – a global
leader in highly engineered, precision power conversion,
measurement and control solutions – today announced that it
completed the previously announced acquisition of SL Power
Electronics Corporation from Steel Partners Holdings L.P. (NYSE:
SPLP). The acquisition adds complementary products to Advanced
Energy’s medical power offerings and extends its presence in
several advanced industrial markets.
“The addition of SL Power expands our offerings for industrial
and medical applications,” said Steve Kelley, president and CEO of
Advanced Energy. “I believe SL Power’s strong customer base,
complementary product portfolio, and highly skilled team make it an
ideal fit for Advanced Energy.”
The acquisition of SL Power Electronics is expected to be
accretive to 2022 earnings on a non-GAAP basis and to generate over
$4 million of annualized cost synergies. Management intends to
provide more detail on the forward-looking benefits of this
acquisition when it announces the first quarter financial results
on May 4, 2022.
About Advanced Energy
Advanced Energy Industries, Inc. (Nasdaq: AEIS) is a global
leader in the design and manufacture of highly engineered,
precision power conversion, measurement and control solutions for
mission-critical applications and processes. Advanced Energy’s
power solutions enable customer innovation in complex applications
for a wide range of industries including semiconductor equipment,
industrial, manufacturing, telecommunications, data center
computing and healthcare. With engineering know-how and responsive
service and support for customers around the globe, the company
builds collaborative partnerships to meet technology advances,
propels growth of its customers and innovates the future of power.
Advanced Energy has devoted four decades to perfecting power. It is
headquartered in Denver, Colorado, USA. For more information, visit
www.advancedenergy.com.
Advanced Energy | Precision. Power. Performance.
Non-GAAP Measures
Advanced Energy’s non-GAAP measures exclude the impact of
non-cash related charges such as stock-based compensation and
amortization of intangible assets, as well as discontinued
operations, and non-recurring items such as acquisition-related
costs and restructuring expenses. The non-GAAP measures included in
this release are not in accordance with, or an alternative for,
similar measures calculated under generally accepted accounting
principles and may be different from non-GAAP measures used by
other companies. In addition, these non-GAAP measures are not based
on any comprehensive set of accounting rules or principles.
Advanced Energy believes that these non-GAAP measures provide
useful information to management and investors to evaluate business
performance without the impacts of certain non-cash charges,
non-economic foreign currency remeasurements, and other cash
charges which are not part of the company’s usual operations. The
company uses these non-GAAP measures to assess performance against
business objectives, make business decisions, develop budgets,
forecast future periods, assess trends, and evaluate financial
impacts of various scenarios. In addition, management’s incentive
plans include these non-GAAP measures as criteria for achievements.
Additionally, the company believes that these non-GAAP measures, in
combination with its financial results calculated in accordance
with GAAP, provide investors with additional perspective. While
some of the excluded items may be incurred and reflected in the
company’s GAAP financial results in the foreseeable future, the
company believes that the items excluded from certain non-GAAP
measures do not accurately reflect the underlying performance of
its continuing operations for the period in which they are
incurred. The use of non-GAAP measures has limitations in that such
measures do not reflect all of the amounts associated with the
company’s results of operations as determined in accordance with
GAAP, and these measures should only be used to evaluate the
company’s results of operations in conjunction with the
corresponding GAAP measures.
Forward-Looking Statements
Statements in this press release regarding the transaction among
Advanced Energy, SL Power Electronics and Steel Partners Holdings
L.P., future financial and operating results, benefits and
synergies of the transaction, and any other statements about
Advanced Energy’s future expectations, beliefs, goals, plans,
aspirations or prospects constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Any statements that are not statements of historical fact
(including statements containing the words "will," "projects,"
"intends," "believes," "plans," "anticipates," "expects,"
"estimates," "forecasts," "continues" and similar expressions)
should also be considered to be forward-looking statements. There
are a number of important factors that could cause actual results
or events to differ materially from those indicated by such
forward-looking statements, including: (1) the ability of Advanced
Energy to successfully integrate SL Power Electronics' operations
and employees; (2) unexpected costs, charges or expenses resulting
from the transaction; (3) the ability to realize anticipated
synergies and cost savings; (4) the ability to realize the
projected revenue, addressable market, synergy, earnings, EPS,
margin expansion, cost savings and de-levering estimates and goals
as described above and in the April 4, 2022 investor presentation;
(5) competition from larger and more established companies in SL
Power Electronics’ markets; (6) Advanced Energy’ s ability to
successfully grow SL Power Electronics’ business; (7) potential
adverse reactions or changes to business relationships resulting
from the announcement or completion of the transaction; (8) the
retention of key employees; and (9) legislative, regulatory, tariff
and economic developments, including changing business conditions
in the medical and industrial power supply industry overall and the
economy in general, as well as financial performance and
expectations of Advanced Energy’s and SL Power Electronics’
existing and prospective customers, and the other factors described
in Advanced Energy’s Annual Report on Form 10-K for the year ended
December 31, 2021 and its most recent quarterly reports filed with
the SEC. Forward-looking statements are made and based on
information available to the company on the date of this press
release. Advanced Energy disclaims any intention or obligation to
update any forward-looking statements as a result of developments
occurring after the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220425005719/en/
Edwin Mok Advanced Energy Industries, Inc. (970) 407-6555
ir@aei.com
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Apr 2024 to May 2024
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From May 2023 to May 2024