Pioneer Power Solutions Announces Sale of Pioneer Custom Electrical Products, LLC to Mill Point Capital LLC

Pioneer Power Solutions, Inc. (NASDAQ: PPSI) recently revealed the sale of its Pioneer Custom Electrical Products, LLC (PCEP) business unit to Mill Point Capital LLC on October 30, 2024. The transaction, valued at $50 million in a combination of cash and equity, includes the assumption of specific liabilities.

PCEP represents the Company’s Electrical Infrastructure business, offering energy solutions that enhance the effective management of electrical energy usage. Notably, PCEP markets several of its solutions under the well-known “E-Bloc” brand.

Mill Point Capital LLC, a New York City-based middle-market private equity firm, plans to merge PCEP with Jefferson Electric, forming Voltaris Power LLC. Through this platform, Mill Point aims to enhance its ability to serve electric power end markets, aligning with America’s energy transition and re-electrification efforts. Pioneer Power Solutions will hold a minority equity stake in Voltaris as part of this venture.

Nathan Mazurek, Chairman and CEO of Pioneer, emphasized that the divestiture of the E-Bloc business marks a significant strategic step forward for Pioneer. With this move, the company is now focused on the growth of its Critical Power and eMobility businesses to unlock their full potential amidst the changing energy landscape.

Under the terms of the agreement, the sale includes $48 million in cash, $2 million in equity of Pioneer Investment LLC, and the transfer of specified liabilities. Pioneer will retain a 4% equity stake in Pioneer Investment LLC, and Nathan Mazurek will join the Board of Directors of Pioneer Investment LLC.

Management at Pioneer Power Solutions will host a conference call at 4:30 p.m. Eastern Time on October 30, 2024, to discuss the transaction along with its financial results for the first half of 2024. Interested parties can participate by dialing 1-877-407-0789 within the United States or 1-201-689-8562 internationally, using conference ID: PIONEER.

Mill Point Capital LLC, known for its control investments in the lower-middle market, focuses on sectors such as Business Services, Industrials, and IT Services in North America. Pioneer Power Solutions, Inc. is renowned for its offerings in electric power systems, distributed energy resources, and mobile EV charging solutions across utility, industrial, and commercial applications.

This press release may contain forward-looking statements subject to various known and unknown risks and uncertainties. Interested stakeholders are encouraged to review the Company’s filings with the SEC for further information regarding risk factors affecting the realization of forward-looking statements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Pioneer Power Solutions’s 8K filing here.

Pioneer Power Solutions Company Profile

Pioneer Power Solutions, Inc, together with its subsidiaries, design, manufacture, integrate, refurbish, distribute, sell, and service electric power systems, distributed energy resources, power generation equipment, and mobile EV charging solutions. The company operates through Electrical Infrastructure Equipment and Critical Power Solutions segments.