A full line manufacturer of liquid filled, encapsulated and ventilated electrical transformers for utility, industrial and commercial applications, today announced it has completed the purchase of certain assets of AAER Inc. (“AAER”), a technologically advanced, megawatt-sized wind turbine manufacturer based in Quebec, Canada. Pioneer previously announced its intent to acquire these assets on June 3, 2010.
Under terms of the purchase agreement, Pioneer acquired most of the inventory, capital assets, intangible assets and intellectual property of AAER through Pioneer Wind Energy Systems, Inc. (“Pioneer Wind”), a newly formed subsidiary, for CDN $450,000 (approximately US $431,500) in cash.
Pioneer Wind intends to build upon AAER’s achievements and will start by fulfilling $15 million in outstanding orders for six turbines to be delivered to U.S. customers in the next six months. Longer-term, Pioneer Wind intends to manufacture increasingly advanced wind turbines that produce clean, efficient and renewable energy, while providing superior service focused on customers in the community wind and industrial market segments.
Nathan Mazurek, Chairman and Chief Executive Officer of Pioneer, commented, “This acquisition is a significant evolutionary step for Pioneer that not only diversifies our capabilities but is expected to enhance our electrical transformer business as well. Specifically, we have developed an equipment configuration that combines our turbines with our transformers, yielding potentially significant capital savings to our customers for certain wind projects. We think there is a large market opportunity for this innovation and intend to market and support it heavily with additional services and resources.”
About Pioneer Power Solutions, Inc. Pioneer is a manufacturer of electrical equipment with particular emphasis on the North American electric utility, industrial, commercial and wind energy markets. Through its subsidiaries, Pioneer has been in the electrical transformer business for over 90 years, manufacturing a full line of liquid filled, encapsulated and ventilated transformers. Pioneer’s wind energy business manufactures megawatt-sized turbines primarily for community wind projects and industrial customers. Pioneer is headquartered in Fort Lee, NJ and operates from six manufacturing, distribution and marketing locations in the U.S., Canada and Mexico. 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 and the Post-Effective Amendment to Form S-1 filed with the SEC on June 1, 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:
Howard Gostfrand
American Capital Ventures
305.918.7000
SOURCE: Pioneer Power Solutions, Inc.
