Fort Lee, NJ, October 30, 2024 – Pioneer Power Solutions, Inc. (Nasdaq: PPSI), a key player in electrical power systems, distributed energy resources, and EV charging solutions, has announced the sale of its Pioneer Custom Electrical Products, LLC (PCEP) business unit, including its well-regarded E-Bloc solutions. The buyer is Mill Point Capital LLC, a private equity firm, and the total transaction is valued at $50 million, encompassing cash, equity, and the assumption of certain liabilities.
This strategic move was revealed alongside the announcement of Voltaris Power LLC, a new electrical power solutions platform formed by Mill Point Capital through the acquisition of Pioneer Cep and Jefferson Electric. Voltaris Power aims to capitalize on the growing demand in electric power markets driven by the energy transition and the increasing electrification across America. Pioneer Power Solutions will retain a minority equity stake in Voltaris, signaling continued involvement and belief in the future of the Pioneer CEP business under its new platform.
Nathan Mazurek, Chairman and CEO of Pioneer Power Solutions, stated, “The divestiture of our Pioneer CEP, or E-Bloc, business is a significant step in our strategic transformation initiated in 2022. This allows Pioneer to concentrate entirely on expanding our Critical Power and eMobility sectors, which hold substantial growth potential. The capital from this sale strengthens our position to develop innovative solutions addressing grid infrastructure challenges in the U.S. and to capture a larger share of the rapidly expanding market.”
Mazurek added, “We are confident that the Pioneer CEP team, as part of Voltaris, will continue to thrive and lead in areas like rapidly deployable microgrids, EV charging infrastructure, and unit substations. We anticipate ongoing collaboration and technology integration where it benefits mutual growth, and we are excited to maintain a significant equity stake in this new electrical equipment platform.”
Key Terms of the Pioneer CEP Sale Agreement
The financial details of the agreement include $48 million in cash and $2 million in equity in Pioneer Investment LLC, along with the assumption of specific liabilities. Pioneer Power Solutions will contribute 4% equity in Pioneer Investment LLC and will hold a minority equity position in Voltaris Power. Furthermore, Pioneer’s CEO, Nathan Mazurek, will join the Board of Directors of Pioneer Investment LLC, ensuring continued strategic alignment.
Further details regarding Pioneer’s strategic direction, the use of proceeds from this sale, and the financial outlook for 2025 will be discussed in an upcoming conference call alongside the release of their third-quarter financial results.
Investor Conference Call Details
Pioneer Power Solutions will host a conference call for investors and stakeholders on Wednesday, October 30, 2024, at 4:30 p.m. Eastern Time to discuss this transaction and the company’s financial performance for the first half of 2024.
Conference Call Access:
- US Domestic: 1-877-407-0789
- International: 1-201-689-8562
- Conference ID: PIONEER
A replay of the conference call will be available until November 13, 2024.
Replay Access:
- US Domestic: 1-844-512-2921
- International: 1-412-317-6671
- Access ID: 13749598
The conference call will also be webcast live and can be accessed online: https://viavid.webcasts.com/starthere.jsp?ei=1693199&tp_key=40e95ec5ff
About Mill Point Capital LLC
Mill Point Capital LLC is a private equity firm specializing in control investments within North American lower-middle market companies across Business Services, Industrials, and IT Services sectors. They focus on enhancing portfolio company value through strategic initiatives and operational improvements. Mill Point Capital is based in New York, NY. For more information, visit: www.millpoint.com.
About Pioneer Power Solutions, Inc.
Pioneer Power Solutions, Inc. is an industry leader in designing, manufacturing, integrating, and servicing electric power systems, distributed energy resources, power generation equipment, and mobile EV charging solutions. They cater to utility, industrial, and commercial markets. To learn more about Pioneer Power Solutions, please visit: www.pioneerpowersolutions.com.
Forward-Looking Statements
This announcement contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions and subject to risks and uncertainties, which are detailed in Pioneer Power Solutions’ filings with the Securities and Exchange Commission, including their Annual and Quarterly Reports. Actual results may differ materially from these forward-looking statements. Investors are encouraged to review these filings at www.sec.gov. Pioneer Power Solutions undertakes no obligation to update these statements.
Contact Information:
Brett Maas, Managing Partner
Hayden IR
(646) 536-7331
[email protected]
