Pioneer Power Solutions finalizes deal for transformer units

By Eric Strauss
Fort Lee | Aug 22, 2019 at 1:37 pm

Pioneer Power Solutions Inc., a Fort Lee-based maker and seller of electrical transmission and power generation equipment, has wrapped up the previously announced, $68 million sale of two transformer businesses, it said Thursday.

The liquid filled and dry type transformer businesses were sold to Mill Point Capital, a private equity firm, for $60.5 million in cash and $7.5 million in debt. The sale included Pioneer Transformers Ltd., and the companies in the Dry Type Transformer Group, including Jefferson Electric Inc., Bemag Transformer Inc. and Harmonics Limited LLC.

“Selling this portion of our business for approximately 1.5 times our current market capitalization is an important step in creating shareholder value,” Chairman and CEO Nathan Mazurek said. “We are evaluating various options for the proceeds, including returning capital to shareholders and strategic M&A. We also continue to hold two viable businesses, and we expect to take steps to improve financial performance of these two entities in the near term.”

Pioneer is retaining its Pioneer Critical Power and Pioneer Custom Electrical Products units.

The transformer deal was first announced in July.

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Eric Strauss | estrauss@roi-nj.com | acerimrat