NEWARK, N.Y., 1 Nov. 2007. Leaders of Ultralife Batteries Inc. in Newark, N.Y., are seeking to boost their presence in the standby power market with their announced acquisition of two affiliated companies in Clearwater, Fla.: Stationary Power Services Inc., an infrastructure power management services company, and Reserve Power Systems Inc., a provider of lead-acid batteries for standby power systems.
Ultralife Batteries has agreed to acquire all of the outstanding shares of Stationary Power and Reserve Power for about $11.3 million. The acquisitions are expected to close by the end of this year. Ultralife anticipates that these acquisitions will be accretive in the first quarter of 2008.
"Acquiring Stationary Power Services will further our transformation from a battery company to a value-added power solutions, accessories, and engineering services company serving a broad spectrum of government/defense and commercial markets," explains John Kavazanjian, Ultralife's president and chief executive officer.
"The global standby power market is experiencing enormous growth arising in large part from extensive investment in telecommunications, utility, and transportation infrastructure especially in emerging markets that require reliable back-up power systems," Kavazanjian says.
Established in 1989, Stationary Power Services is an infrastructure power management services firm specializing in the engineering, installation and preventive maintenance of standby power systems, uninterrupted power supply systems, DC power systems and switchgear/control systems for the telecommunications, aerospace, technology, banking and information services industries.
Stationary Power Services is 100 percent owned by Bill Maher, the company's founder and president. In 2006, Stationary Power Services generated operating income of $1.3 million on $8.9 million in revenue.
Under the terms of the agreement, the purchase price will consist of $6 million in cash, a $4 million non-transferable subordinated convertible note to be held by the seller, and a performance-based equity incentive payable in 100,000 unregistered shares of Ultralife common stock over a period as long as five years. The $4 million convertible note carries a three-year term and is convertible at $15 per share of Ultralife common stock, with a forced conversion feature at $17 per share.
Reserve Power Systems, established in 2006, supplies lead acid batteries primarily for Stationary Power Services in the design and installation of standby power systems. The purchase price for Reserve Power Systems consists of 100,000 unregistered shares of Ultralife common stock worth $1.3 million. Reserve Power Systems is 50 percent owned by Bill Maher and 50 percent owned by Ed Bellamy, Stationary Power's vice president of sales and marketing.
For more information contact Ultralife Batteries online at www.ultralifebatteries.com.
