AMSC Extends New Energy Power Systems Product Offerings with the Acquisition of Neeltran, Inc.

• Extends product offerings in industrial sector, potentially expanding content per sale by 2-3x.
• Increases total available market for AMSC new energy power system products to nearly $3B.
• Anticipated to generate positive operating cash flow and be accretive to earnings per share.
  

AYER, Mass., May 06, 2021 (GLOBE NEWSWIRE) -- AMSC (Nasdaq: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid and protect and expand the capability of our Navy’s fleet, today announced that it has acquired Neeltran, Inc. (Neeltran), a private Connecticut-based company that supplies rectifiers and transformers to industrial customers. At closing, AMSC paid $4.5 million in cash and issued 301,556 restricted shares of AMSC common stock having a value of approximately $4.3 million. Additionally, AMSC paid $7.6 million directly to Neeltran lenders at closing to extinguish outstanding Neeltran debt.

The acquisition of Neeltran directly aligns with AMSC’s strategic priority to achieve sustainable profitability independent of its wind business, broaden its product offerings and expand both total available market share and content-per-sale for the industrial sector. In calendar 2020, Neeltran had generated approximately $16 million in revenue, and AMSC expects this acquisition will generate operating cash flow and be accretive to earnings per share within 12 months from closing. By leveraging Neeltran’s leadership position in the industrial rectifier and transformer market , AMSC expects to expand its grid business offerings and deliver greater value to existing and new customers, business partners and stockholders.

“Neeltran builds upon our recent push into the industrial sector with our acquisition of NEPSI. We expect that Neeltran’s long-standing relationship with NEPSI will allow us to expand our offering of proprietary power electronics products into the industrial market,” said Daniel P. McGahn, Chairman, President and CEO of AMSC. “Further, Neeltran’s participation in the mining and chemical industry enhances our position in supporting the industries that supply the material inputs to satisfy the increasing demand for electric vehicles and the overall electrification of transportation.”