Smiths Interconnect, a division of global technology business Smiths Group plc, announced its purchase of Power Holdings Inc. (PDI), a designer and manufacturer of specialist power distribution, conditioning and monitoring systems.
Based in Richmond, Virginia, PDI is the parent company for Power Distribution, Inc., Marelco Power Systems, Inc. and Onyx Power, Inc. The acquired company produces power distribution units, static transfer switches, remote power panels, power conditioning units, medium and low voltage transformers and patented power monitors used mainly in data center and alternative energy applications.
The acquisition, from private equity firm Bertram Growth Capital I, L.P., will be cash-funded and is subject to regulatory approval. The purchase price of $235 million will be subject to post closing adjustments with respect to working capital at completion.
Smiths Group Chief Executive Philip Bowman commented, "Smiths Interconnect operates in a highly fragmented market that offers great scope for consolidation. PDI is its sixth and largest acquisition in three years, all adhering to our strategic criteria of adding complementary technologies, extending geographic reach or leveraging existing sales networks. This latest transaction expands its range of power quality technologies into new, specialised, high growth markets."
Smiths Interconnect's stated strategy is "to build its core technology groups: microwave; connectors and power management. Smiths says that recent acquisitions have significantly expanded the product offerings and capabilities of its connectors and microwave groups. The acquisition of PDI transforms the existing power protection group with a new range of products and growth opportunities."
Smiths Interconnect President Ralph Phillips added, "The addition of PDI strengthens our offering of technically differentiated solutions for applications requiring ultra-reliable and precise power performance including higher-growth end markets such as data centres and alternative energy. We will now be able to provide a breadth of high reliability power quality capabilities, including conditioning, protection, distribution, filtering and monitoring to ensure the optimum function of advanced electrical systems."
PDI, which also has facilities in Santa Ana, California and Howell, Michigan, employs around 370 people. It is expected to generate sales of around $156 million this calendar year with more than 90% of revenues from non-government funded markets.
More Info: www.smiths.com
