Smiths Interconnect buys Power Holdings for $235 million
PDI produces power distribution units, static transfer switches, remote power panels, power conditioning units, medium and low voltage transformers and patented power monitors
London, September 6, 2011 — Smiths Interconnect, a division of global technology business Smiths Group, will purchase Power Holdings Inc., a designer and manufacturer of power distribution, conditioning and monitoring systems.
The purchase price of $235 million will be subject to post closing adjustments with respect to working capital at completion.
Based in Richmond, Virginia, PDI is the parent company for Power Distribution, Inc., Marelco Power Systems, Inc. and Onyx Power, Inc. It produces power distribution units, static transfer switches, remote power panels, power conditioning units, medium and low voltage transformers and patented power monitors used mainly in data center and alternative energy applications.
The acquisition, from private equity firm Bertram Growth Capital I, L.P., will be cash-funded and is subject to regulatory approval.
Smiths Interconnect's strategy is to build its core technology groups: microwave; connectors and power management. Recent acquisitions have expanded the product offerings and capabilities of the connectors and microwave groups. The acquisition of PDI transforms the existing power protection group with a new range of products and growth opportunities.
PDI, which also has facilities in Santa Ana, California and Howell, Michigan, employs around 370 people. It is expected to generate sales of around $156 million this calendar year with more than 90 percent of revenues from non-government funded markets.