AEG Power Solutions GmbH a subsidiary of global power electronics company AEG Power Solutions has announced that it has divested its power control modules business to U.S. power conversion company Advanced Energy Industries.
The Colorado-based firm has purchased the asset, which generates average annual revenues of $19 million, and under the terms of the agreement has contracted AEG Power Solutions to continue to produce the modules at its principle factory in Warstein-Belecke, Germany.
Production of these power control modules will no longer form a core activity for the AEG Power Solutions group, said the company. Instead, primary focus will continue to be given to delivering high quality power systems and solutions for "infrastructure, industrial and demanding commercial applications," in addition to continued research into providing more advanced solutions for renewable energies.
"With Advanced Energy Industries we found a strong and credible partner who will further develop the power control modules business," said AEG Power Solutions’ CRO and member of the board of directors, Jeffrey Casper. "This agreement is an important step to the ongoing reorganization of the AEG Power Solutions Group."
As part of the agreement, Advanced Energy Industries has also acquired the Thyro-Family product line for an estimated cash purchase price of $30 million. The contract also stipulates that AEG will be owed a further cash earn-out of up to 1 million ($1.35 million) if the product line hits its EBITDA target in the first 12 months after closing.