AEG Power Solutions (FWB:3W9), a global provider of power electronics systems and solutions for industrial power supplies and renewable energy applications, today announced that AEG Power Solutions GmbH, its German subsidiary, entered into a contract to divest their power control modules business to Advanced Energy Industries Germany, GmbH, Metzingen, Germany, a subsidiary of Advanced Energy Industries, Inc. (Advanced Energy Industries) Colorado, USA. Advanced Energy Industries is a global leader in reliable power conversion solutions used in thin-film plasma manufacturing processes and solar energy generation.
“With Advanced Energy Industries we found a strong and credible partner who will further develop the power control modules business”
The power control modules activity represents annual revenues of €14 million. AEG Power Solutions has entered into a long term manufacturing agreement to produce the modules for Advanced Energy Industries at its principle factory in Warstein-Belecke, Germany.
AEG Power Solutions will continue to focus on its core areas of competitive strength in delivering high quality power systems and solutions for infrastructure, industrial and demanding commercial applications, and advanced solutions for renewable energies and next generation distributed power generation. In this perspective, power control modules are non-core to the Group.
"With Advanced Energy Industries we found a strong and credible partner who will further develop the power control modules business”, said Jeffrey Casper, CRO and member of the Board of Directors. “This agreement is an important step to the ongoing reorganization of the AEG Power Solutions Group.”
Under the agreement, Advanced Energy Industries has acquired the Thyro-Family product line for €22 million in cash plus a one year cash earn-out of up to €1 million, payable in cash, if the EBITDA target for the product line is met in the first 12 months after closing.
Source: AEG Power Solutions