FORT LEE, NJ--(Marketwire - June 3, 2010) - Pioneer Power Solutions, Inc. (
Under terms of the agreement, Pioneer will acquire most of the Inventory, Capital Assets, Intangible Assets and Intellectual Property of AAER for CDN $450,000 (approximately US $431,500) in cash. The acquisition is expected to close June 7, 2010. Upon closing, AAER will be renamed Pioneer Wind Energy Systems, Inc., a wholly-owned subsidiary of PPSI.
Pioneer will now have the ability to offer a diverse offering of wind energy systems including:
- A-1000S
A 1,000 kW stall-controlled three-bladed wind turbine designed for energy-efficient performance in all climates and geological conditions. - A-1500
A 1,500 kW wind turbine with high-tech components for maximum availability in all types of wind conditions. - A-1650
The A-1650 wind turbine is an upgraded version of the A-1500. The new configuration improves the output performance of the wind turbine generator for different wind classes. - A-2000
The A-2000 wind turbine featuring a superposition gearbox concept with variable speed ratio, coupled to a synchronous generator that easily connects to the existing grid.
Nathan Mazurek, Chairman and Chief Executive Officer of Pioneer, commented, "We are excited to enter the burgeoning wind turbine business with the acquisition of these strategic assets. Offering these alternative energy systems is a natural extension of our business as we become a leading provider of diverse power systems in North America." Mr. Mazurek continued, "We will address the smaller wind projects where orders are expected to be in range of 1-5 turbines. Our goal is to reach an operating run rate of delivering between 50-100 turbines per year within the first three years. We will be able to leverage the existing sales efforts with those of PPSI and Jefferson Electric which we recently acquired. Offering wind energy systems will further diversify our customer base, revenue stream and growth potential."
About Pioneer Power Solutions, Inc.
Through its subsidiaries, Pioneer is a full line manufacturer of liquid filled, encapsulated and ventilated transformers, and has been for over 50 years. Pioneer serves customers in a variety of industries with particular emphasis on the electric utility, industrial and commercial markets in Canada and the United States. To learn more about Pioneer, please visit our website at www.pioneerpowersolutions.com.
Forward-looking Statements:
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) fluctuations in foreign currency exchange rates; (ii) the loss of significant customers; (iii) increases in the prices of raw materials; (iv) development of new products and service offerings; (v) the company's ability to integrate acquisitions; (vi) the effectiveness, profitability, and marketability of the company's current and prospective products and services; (vii) the impact of current, pending, or future legislation and regulation on the company's industry; and (viii) the impact of competitive products, services, pricing or technological changes. More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, including the company's Form 10-K filed with the SEC on April 15, 2010. Investors and security holders are urged to read this document free of charge on the SEC's web site at www.sec.gov. The company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact Information:
Contact:
Howard Gostfrand
American Capital Ventures
305.918.7000