Expands Company’s Share of the Portable Medical Battery Market
CLARENCE, N.Y.--(BUSINESS WIRE)--Dec. 13, 2011--
Electrochem Solutions, Inc., a subsidiary of Greatbatch, Inc. (NYSE:GB),
today announced a definitive agreement to acquire Micro Power
Electronics for net cash consideration of approximately $60 million and
the assumption of debt and certain transaction-related payments and
expenses. Greatbatch intends to finance this acquisition, which is
expected to close by the end of the year, with cash on hand and
availability under its existing revolving credit facility.
Micro Power, headquartered in Beaverton, Oregon, is a leading supplier
of custom battery solutions, serving the portable medical market as well
as military and handheld automatic identification and data collection
(AIDC) markets. Micro Power’s highly-respected commercial portfolio
complements products and services offered by Electrochem for the
portable medical, energy, military and environmental industries.
“This complementary acquisition will diversify Electrochem’s revenue
base by expanding its presence in the portable medical market, and
stimulating growth in other key market sectors,” said Susan M. Bratton,
Senior Vice President, Electrochem. “Additionally, the combination of
world-class talent from Electrochem and Micro Power will deliver even
stronger innovation, research and development, product commercialization
opportunities and industry service excellence, directly benefiting our
customers, our employees and our shareholders.”
Electrochem plans to maintain Micro Power’s facility in Oregon, where it
employs approximately 200 people. Greatbatch anticipates minimal impact
to existing Micro Power and Electrochem employment, given the
complementary nature of the two organizations. The Beaverton site’s
collaboration with Electrochem locations in Clarence, New York and
metropolitan Boston will allow for bi-costal operations in support of an
expanded customer base, while also helping the company retain and
recruit the world’s top innovators.
Electrochem anticipates that Micro Power will have approximately $70
million of revenue for 2011. Excluding one-time acquisition related
charges, the Micro Power acquisition is expected to be neutral to
Greatbatch’s earnings for 2011 and 2012 and accretive thereafter.
Micro Power was advised on the transaction by XMS Capital Partners.
This press release contains forward-looking statements, including
statements regarding the anticipated closing date of the above described
acquisition, the expected effect of the acquisition on Greatbatch’s
earnings and sales and their role in complementing and advancing
Electrochem’s business. These statements are based on current
expectations, forecasts and assumptions. Actual results could differ
materially from those anticipated by these forward-looking statements as
a result of a number of factors, some of which may be beyond
Greatbatch's control. Among other things, these factors include the risk
that the acquisition will not be completed or is delayed. Other factors
include the possibility that the expected financial and strategic
benefits of the acquisition are not realized in a timely manner or at
all, and that unknown or larger than anticipated liabilities are assumed
in connection with the acquisition that results in losses to Electrochem
and Greatbatch. For a further list and description of risks and
uncertainties associated with Greatbatch’s business, see its filings
with the Securities and Exchange Commission, including the “Risk
Factors” section in Greatbatch’s most recent annual report on Form 10-K.
Greatbatch disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise except as required by law.
About Electrochem and Greatbatch, Inc.
Electrochem, founded in 1979, is a world leader in the design and
manufacture of custom battery and wireless sensing technology solutions.
A subsidiary of Greatbatch, Inc., Electrochem was born from the lithium
battery invented for the implantable pacemaker by Wilson Greatbatch.
Today, Electrochem is known for its reliable products which are used
across a range of applications in the portable medical, energy,
military, aerospace, environmental and process control industries. For
more information, visit www.electrochemsolutions.com.
Greatbatch, Inc. (NYSE: GB) provides top-quality technologies to
industries that depend on reliable, long-lasting performance through its
brands -- Greatbatch Medical, Electrochem and QiG Group. Greatbatch
Medical develops and manufactures critical medical device technologies
for the cardiac, neurology, vascular and orthopaedic markets.
Electrochem designs and manufactures battery and wireless sensing
technologies for high-end niche applications in the energy, military,
portable medical, and other markets. The QiG Group empowers the design
and development of new medical devices for the company’s core markets.
For more information, visit www.greatbatch.com.
Source: Electrochem Solutions, Inc.
Electrochem Solutions, Inc.
Media:
Christopher
Knospe, 716-759-5727 (office)
cknospe@greatbatch.com
or
Investor
Relations:
Marco Benedetti, 716-759-5856
Corporate
Controller & Treasurer
mbenedetti@greatbatch.com