Advanced Energy Industries Inc. on Sept. 10 announced the completion of its purchase of Artesyn Embedded Technologies Inc.'s Embedded Power business from Platinum Equity for approximately $400 million.
About $375 million in cash was paid in closing and approximately $25 million in net liabilities was assumed by Advanced Energy. The liabilities include estimated adjustments for net working capital and acquired cash.
Artesyn Embedded Power, or Artesyn EP, is a provider of application-specific power supplies for demanding applications.
The deal will create a global power conversion company with over $1.3 billion in annual revenue, based on 2018 combined historical results. It is expected to be immediately accretive to Advanced Energy's non-GAAP earnings and to generate more than $20 million of annualized synergies within 1.5 to 2 years and $40 million of total synergies in the long term, the company said in a Sept. 10 news release.
In conjunction with the transaction, Advanced Energy closed a credit financing totaling $500 million, which consists of a $350 million senior unsecured term loan A facility, and an untapped $150 million senior unsecured revolving facility, with a term of five years. The financing was led by Bank of America NA, with commitments from HSBC Bank USA NA, Bank of the West and Citibank NA.
Also on Sept. 10, Advanced Energy terminated its loan agreement with Bank of America which provided the company with a revolving line of credit of up to $150 million, subject to certain funding conditions. At the time of termination, there were zero borrowings outstanding under the loan agreement with Bank of America.
