PSI Acquires Professional Power Products
Power Solutions International, Inc., (PSI) a designer and manufacturer of alternative fuel and conventional power systems, has acquired Professional Power Products, Inc., a designer and manufacturer of electrical power generation systems for the diesel and natural gas power generation market.
Professional Power Products, of Darien, Wis., specializes in power generation systems for both standby and prime power applications. Each integrated generator system is a pre-assembled, modular, fully integrated generator set shipped directly to the OEM or end user customer. The company’s product portfolio also includes switchgear, control panels, load banks, mobile power trailers and UL Listed tanks. In 2013, the company generated net sales and operating income of approximately $40.3 million and $7.9 million, respectively.
PSI, which is based in Wood Dale, Ill., acquired all of the outstanding capital stock of Professional Power Products for an initial cash purchase price of $46 million. In addition, PSI will issue to the sellers between $5 million and $15 million in the Company's common stock, valued at $76.02 per share, based upon Professional Power Products 2014 operating results. The cash portion of the transaction is being financed initially with the Company’s bank credit facility. To facilitate the transaction, the Company entered into an amended and restated agreement with Wells Fargo Bank, N.A. increasing its revolving line of credit from $75 million to $90 million, among other things.