Acquisition of Valere Power finalized
Eltek Energy AS has finalized the acquisition of Valere Power Inc. in USA,
which creates the world’s fastest growing company in the telecom power industry.
As earlier communicated, Eltek Energy pays USD 83 million in cash.
The shareholders of Valere Power also receive 9.1 percent of the shares
in Eltek Energy AS and 9.9 percent of the shares in Eltek Energy Holding Inc.
The latter comprises the activities in Valere Power Inc. and in Eltek Energy LLC in the Americas.
The cash transfer and shares issues in Eltek Energy AS and Eltek Energy Holding Inc.
have now been completed.
The acquisition of Valere Power adds further growth opportunities to
Eltek Energy global portfolio, and makes the company one of the market leaders
in all the major geographical regions.
The market position is significantly strengthened in the world’s largest market – the US – where revenues will more than double.
The new company will also significantly strengthen its position in India – the world’s fastest growing market. The acquisition is expected to be EPS accretive (before amortization of purchase price allocation, PPA) for Eltek ASA from 2008.
At the time of closing, Valere Power held net interest bearing debt of approximately
USD 12 million and Eltek Energy AS approximately USD 100 million.
Eltek financed the acquisition through existing cash and new loan facilities.
To this respect, the company has entered into a complete refinancing arrangement
with Danske Bank which also covers existing loans and credit- and guarantee facilities.
Eltek-Acquisition of Valere Power finalized
