American Superconductor (AMSC) Acquires NWL

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 NWL, Inc. (NWL), a private company based in New Jersey that provides power supplies to industrial and military customers. At closing, AMSC paid $25 million in cash and issued 1,297,600 restricted shares of AMSC common stock with a value of approximately $31.4 million. As part of the transaction, AMSC will make an additional cash payment of $5 million, subject to various adjustments set forth in the stock purchase agreement.

AMSC believes the acquisition of NWL directly aligns with the company’s strategic priorities to accelerate profitable growth, broaden its product offerings, and expand both market reach and market share. NWL has a history of profitable revenue with a three-year average of approximately $55 million in revenue per year and operating margins approaching the teens. NWL supplies components for a variety of energy applications. Their offerings include power supplies and power controls to industrial and military customers. NWL’s military progress, coupled with AMSC’s own growth in this sector, is expected to further strengthen and amplify the military power supply sales channel. By leveraging NWL’s leadership position in the industrial and military markets, AMSC expects to expand its business offerings and deliver greater value to existing and new customers, business partners, and shareholders.

“As we expand our military business, we believe NWL has the potential of multiplying our military footprint within the US Navy and the Department of Defense and given our recent work and success with allied navies, the two companies together are expected to provide a powerful combination,” said Daniel P. McGahn, Chairman, President and CEO of AMSC. “NWL has established a leadership position in the industrial and military markets for power products that complements and scales our recent push into these markets. The addition of NWL to AMSC’s Grid solutions is expected to accelerate our ability to achieve our goal of sustainable profitability and expand our offering of proprietary power products in the industrial and military sectors.”

Fairmount Partners served as the exclusive merger and acquisition advisor to NWL in this transaction. For more information about the stock purchase agreement, please refer to AMSC’s Form 8-K filed with the SEC today.

The Company intends to discuss this acquisition during its previously announced conference call with investors to discuss the Company’s financial results for the first quarter of fiscal 2024 and business outlook beginning at 10:00 a.m. Eastern Time on Wednesday, August 7, 2024.

Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://www.amsc.com. The live call can be accessed 15 minutes prior to the scheduled start time by dialing 1-844-481-2802 or 1-412-317-0675 and asking to join the AMSC call. A replay of the call may be accessed 2 hours following the call by dialing 1-877-344-7529 and using conference passcode 9653245.

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