NEWARK — Ultralife officials say the company has acquired Southwest Electronic Energy Corporation, including its manufacturing and technology facility, for $25 million in cash.
Based in Missouri City, Texas, Southwest Electronic Energy Corporation is a leading independent designer and manufacturer of high-performance smart battery systems and battery packs to customer specifications using lithium cells.
The company’s markets, include oil and gas, remote monitoring, process control and marine, which Ultralife said “demand uncompromised safety, service, reliability and quality.”
For the 12-month period that ended Dec. 31, Southwest Electronic Energy generated revenue of over $28 million.
“This acquisition advances our strategy of commercial revenue diversification and enhances the operating leverage of our business model,” said Ultralife President and Chief Executive Officer Michael Popielec. “SWE checks nearly every box in our profile of an ideal acquisition candidate: a complementary line of highly engineered, mission critical, differentiated products; a blue-chip customer base; an innovative culture similar to our own; an experienced technical engineering and new product development team; a very strong management team; and a business model aligned with our core business. We welcome the SWE team to Ultralife and look forward to a smooth integration process.”
Income down in first quarter
Ultralife also reported operating income of $500,000 on revenue of $18.9 million for the first quarter ended March 31, compared to operating income of $2.4 million on revenue of $23.1 million for the first quarter last year.
“First quarter results were significantly impacted by a reduction in government/defense sales largely due to delays of amplifier shipments under the U.S. Army’s Network Modernization initiatives by Communications Systems,” said Popielec. “We are now operating at a higher rate of amplifier production and have produced more units in the month of April than during the entire first quarter. In addition, normal fluctuations in government/defense order flow resulted in a decline in Battery & Energy Products sales that was buffered by continued strength in medical sales.”
Popielec added that “with key amplifier product shipments now increasing and robust opportunities for growth from our diversified set of commercial and government/defense customers ahead of us, we remain well-positioned for another year of pro fitable growth in 2019.”
Ultralife products and services range from power solutions to communications and electronics systems, serving government, defense and commercial customers across the globe.