Business
AMSC Accelerates toward Profitability with the Acquisition of NWL, Inc.
AMSC Extends Product Offerings in the Military and Industrial Sectors Acquisition Expected to be Accretive to Earnings Per Share AYER, Mass., Aug. 05, 2024
About this update from American Superconductor Corporation
[{"type":"text","content":"AMSC Extends Product Offerings in the Military and Industrial Sectors Acquisition Expected to be Accretive to Earnings Per Share\nAYER, Mass., Aug. 05, 2024 (GLOBE NEWSWIRE) -- AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability of our Navy’s fleet, today announced that it has acquired NWL, Inc. (NWL), a private company based in New Jersey that provides power supplies to industrial and military customers. At closing, AMSC paid $25 million in cash and issued 1,297,600 restricted shares of AMSC common stock with a value of approximately $31.4 million. As part of the transaction, AMSC will make an additional cash payment of $5 million, subject to various adjustments set forth in the stock purchase agreement. AMSC believes the acquisition of NWL directly aligns with the company’s strategic priorities to accelerate profitable growth, broaden its product offerings, and expand both market reach and market share. NWL has a history of profitable revenue with a three-year average of approximately $55 million in revenue per year and operating margins approaching the teens. NWL supplies components for a variety of energy applications. Their offerings include power supplies and power controls to industrial and military customers. NWL’s military progress, coupled with AMSC’s own growth in this sector, is expected to further strengthen and amplify the military power supply sales channel. By leveraging NWL’s leadership position in the industrial and military markets, AMSC expects to expand its business offerings and deliver greater value to existing and new customers, business partners, and shareholders. “As we expand our military business, we believe NWL has the potential of multiplying our military footprint within the US Navy and the Department of Defense and given our recent work and success with allied navies, the two companies together are expected to provide a powerful combination,” said Daniel P. McGahn, Chairman, President and CEO of AMSC. “NWL has established a leadership position in the industrial and military markets for power products that complements and scales our recent push into these markets. The addition of NWL to AMSC’s Grid solutions is expected to accelerate our ability to achieve our ...