Lead-acid battery maker Enersys is to acquire Canadian firm Alpha Technologies in a US$750 million deal to create “the only complete power solution provider for broadband, telecom and energy storage systems”.
Enersys said it had entered into an agreement to acquire all issued and outstanding shares and certain assets of select entities belonging to the Alpha Technologies group of companies.
Under the terms of the deal, the Pennsylvania-based battery giant will pay $650m in cash and the rest in either cash or Enersys shares.
Enersys president and CEO David Shaffer (pictured) described Alpha Technologies— headquartered in Bellingham, Washington— as a “preeminent total power solutions provider and a one-stop shop power solutions for the telecom, broadband, renewable energy and industrial markets”.
“We believe that our significantly expanded product portfolio across [these] markets, and out integrated solutions approach with systems, software, and services will uniquely position us,” Shaffer said.
Alpha generated $591m in revenue for the 12 months ending 30 June 2018, with adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of $67m, giving an EBITDA margin of 11%.
Enersys manufactures and distributes reserve power and motive power batteries, chargers, accessories, and custom batteries for military and aviation applications.
In August of this year, Enersys invested a comparatively paltry $6.4m to improve manufacturing facilities and keep pace with growing demand in the aerospace and defence businesses.
The acquisition of Alpha Technologies is expected to close within 60 days; Enersys predicts the collaboration will result in annual savings in excess of $25m.