Benzinga | Dec 14, 2021 02:06PM EST

Ultralife Corporation Acquires Excell Battery Group For $23.5M In Cash

Ultralife Corporation (NASDAQ:ULBI) has acquired all of the outstanding shares of Excell Battery Group ("Excell") for $23.5 million in cash, subject to customary working capital and net cash adjustments.



Based in Canada with U.S. operations, Excell is a leading independent designer and manufacturer of high-performance smart battery systems, battery packs and monitoring systems to customer specifications. Excell serves a variety of industrial markets including downhole drilling, OEM industrial and medical devices, automated meter reading, and mining, marine and other mission critical applications which demand uncompromised safety, service, reliability and quality. For the trailing twelve-month period ended November 30, 2021, Excell generated revenues of $21.2 million. The transaction is expected to be accretive on an EPS basis within twelve months.

"Acquisitions have been and remain an important component of our strategy to diversify commercial revenue and expand the end markets we serve. With this transaction, we are advancing that strategy while adhering to our disciplined approach," said Michael D. Popielec, President and Chief Executive Officer. "Acquiring Excell offers us opportunities to further scale our Battery & Energy Products business and drive the proven operating leverage of our business model, expand into OEM device verticals that we do not presently serve, enhance our contributed value to both our customers and realize cost synergies. Importantly, Excell possesses experienced technical resources which we plan to utilize in progressing our global new product initiatives while adding a complementary line of highly engineered products that are costly to switch out. Finally, with an organizational culture and business model similar to our own, we look forward to a seamless integration process and welcome the Excell Team to Ultralife."

"Excell Battery is well known among its long-standing customer base for its innovative team, exceptional customer service and quality battery solutions," said Ian Kane, President and Chief Executive Officer of Excell Battery Group. "In joining Ultralife Corporation, we can both provide our existing customers with a wider range of services and improved resiliency for their supply chains. We are thrilled to have found a partner that shares our operating philosophy and commitment to customer collaboration."