Ultralife Completes Acquisition of Electrochem Solutions for $50M
Deal News | Nov 01, 2024 | Globenewswire
Ultralife Corporation, a provider of power solutions, communications, and electronics systems, has successfully completed its acquisition of Electrochem Solutions, Inc. from Integer Holdings Corporation for $50 million in cash. This strategic acquisition, finalized on October 31, 2024, is designed to advance Ultralife’s business strategy by enhancing operational leverage and exploring new market opportunities. Electrochem, with over four decades of experience in battery technology, primarily designs and manufactures lithium metal and ultracapacitor batteries, and has served energy, military, and various other sectors globally, achieving $34 million in revenue over the past year. This deal aims to bolster Ultralife’s competitive profile and broaden their customer solutions with Electrochem’s expertise. The acquisition is financed through a new Credit and Security Agreement arranged with KeyBank as the administrative agent, joined by M&T Bank and Community Bank as lenders. Ultralife aims to utilize this expansion to secure further market growth by utilizing Electrochem’s products and expertise. This transaction also underscores Ultralife's continued commitment to its core values of safety, reliability, and quality across its business ventures.
Sectors
- Battery Technology
- Energy
- Defense
- Finance
Geography
- United States – Both Ultralife Corporation and Electrochem Solutions are based in the U.S., with Ultralife headquartered in Newark, New York, and Electrochem in Raynham, Massachusetts.
Industry
- Battery Technology – Electrochem Solutions is involved in designing and manufacturing primary lithium metal and ultracapacitor cells and battery packs, which categorizes it within the battery technology sector.
- Energy – Both Ultralife and Electrochem serve energy markets with their power and battery solutions, making energy a relevant industry classification.
- Defense – Ultralife serves government and defense sectors, while Electrochem's products also cater to military applications.
- Finance – Involvement of KeyBank, M&T Bank, and Community Bank in financing the acquisition places this transaction within the finance industry.
Financials
- $50 million – The purchase price for the acquisition of Electrochem Solutions by Ultralife Corporation.
- $34 million – The revenue reported by Electrochem Solutions for the twelve months ended September 30, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ultralife Corporation | Buyer | Company | A provider of power solutions, communications, and electronics systems, headquartered in Newark, New York. |
| Electrochem Solutions, Inc. | Target | Company | A subsidiary of Integer Holdings Corporation, specializes in battery technology for critical applications. |
| Integer Holdings Corporation | Seller | Company | A company from which Ultralife acquired Electrochem Solutions. |
| KeyBank, N.A. | Financial Advisor | Company | Acted as the administrative agent for the credit and security agreement to finance the acquisition. |
| M&T Bank | Lender | Company | Served as a lender alongside KeyBank and Community Bank for the acquisition financing. |
| Community Bank | Lender | Company | Participated as a lender with M&T Bank and KeyBank for financing the acquisition. |
| Mike Manna | President and CEO of Ultralife | Person | Led the acquisition strategy for Ultralife Corporation. |
| Khristine Carroll | President of Electrochem | Person | President of Electrochem, now part of Ultralife Corporation. |