Jefferson Electric Inc. of Franklin has been acquired by Pioneer Power Solutions Inc., a Fort Lee, N.J.-based manufacturer of liquid-filled electric transformers for utility, industrial and commercial applications.
Jefferson Electric manufactures and supplies dry-type transformers.
The transaction, valued at approximately $10 million, includes a combination of restricted stock and warrants issued to Thomas Klink, previously the sole stockholder of Jefferson, as well as extending the term of Jefferson's existing credit facility.
As a result of the acquisition, Jefferson will operate as a wholly owned subsidiary of Pioneer and Klink will remain as Jefferson's president.. Klink will also join Pioneer's board of directors.
Jefferson recorded 2009 revenues of approximately $20 million and is expected to be immediately accretive to Pioneer's earnings per share in 2010.
All of Jefferson's design, engineering, sales, executive management and related support functions are performed by the company 35 employees at its headquarters in Franklin. Jefferson also recently acquired a plant in Reynosa, Mexico, and maintains a centralized warehouse location in Pharr, Texas.
Nathan Mazurek, chairman and chief executive officer of Pioneer, said, "We are also delighted to welcome Mr. Klink to our Board of Directors. He brings with him a wealth of experience and in-depth industry knowledge that will be greatly beneficial to advancing Pioneer's long term vision. We look forward to working with him and the whole Jefferson team."
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