Ultralife Batteries has completed the acquisition of ABLE New Energy, a manufacturer of lithium batteries located in Shenzhen, China. Under the terms of the acquisition, the purchase price of approximately $4.2 million consists of cash, common stock and stock warrants.
The cash portion is equal to $2.5 million, with $2 million paid upon the closing and $500,000 contingent on the achievement of certain performance milestones of the acquired business. The equity portion of the purchase price consists of approximately 96,000 shares of Ultralife common stock and 100,000 stock warrants.
Established in 2003, ABLE produces non-rechargeable lithium-manganese dioxide and lithium-thionyl chloride batteries, and supplies a variety of other non-rechargeable and rechargeable battery chemistries, for a wide range of applications worldwide including utility meters, security systems, tire pressure sensors, medical devices, automotive electronics and memory backup, among many others. In 2005, based on unaudited figures, ABLE generated approximately $300,000 in operating profit on approximately $2.3 million in revenue.
"We acquired ABLE to enhance our global presence and competitive strength both through the expansion of our product line and by creating access to lower material and manufacturing costs," said John D.Kavazanjian, Ultralife’s president and chief executive officer. "This acquisition will also facilitate our entry into the rapidly growing Chinese market."
