Acquisition foundational to Clean Energy
Solutions portfolio
Sensata Technologies (NYSE: ST), a leading industrial technology
company and provider of sensor-rich solutions and insights for
customers, today announced that it has agreed to acquire Dynapower
Company, LLC (“Dynapower”), a leading provider of energy storage
and power conversion systems to advance a resilient clean energy
future from private equity firm Pfingsten Partners for $580 million
in cash. The transaction is subject to regulatory approvals and
other customary closing conditions. Sensata and Dynapower expect to
complete the transaction early in the third quarter of 2022.
A trusted leader with nearly 60 years of experience, Dynapower
provides energy storage and power conversion systems including
inverters, converters, rectifiers and custom transformers for
renewable energy generation, green hydrogen production, electric
vehicle charging stations, and microgrid applications, as well as
industrial and defense applications. A broad product portfolio,
strong track record in the field, and commitment to customers makes
Dynapower a trusted global name in energy storage and power
conversion. Dynapower also provides aftermarket sales and service
to maintain and monitor an installed base of equipment at customer
locations. With decades of experience and application expertise in
energy storage and power conversion systems for industrial
applications, Dynapower is a key player in the clean energy
transformation.
Dynapower is expected to generate over $100 million in
annualized revenue in 2022 with approximately 20% EBITDA margins,
while averaging annual growth in excess of 30% through 2026.
Dynapower’s addressable markets are large and fast-growing,
including energy storage and power conversion systems for grid-tied
renewable power conversion - an $800M addressable market growing to
$2.7B in 2030, and green hydrogen production, a $250M market
experiencing a period of hyper growth fueled by large private and
public investments expected to be a $2.6B addressable market in
2030. Dynapower’s recent wins with global blue-chip customers in
green hydrogen rectifiers, commercial & Industrial power
conversions solutions, and front of meter power conversion and
energy storage position Sensata and Dynapower to help shape the
clean energy transition for customers and partners.
The acquisition of Dynapower is a foundational addition to
Sensata’s Clean Energy Solutions strategy and complements Sensata’s
recent acquisitions of Gigavac, Lithium Balance and Spear Power
Systems. Through its rapid expected revenue growth, Dynapower is
expected to represent more than 50% of the $500 million of acquired
revenue needed to reach Sensata’s goal of $2 billion in
Electrification revenue by 2026, as outlined in Sensata’s recent
Electrification Teach-In. Further to this, Sensata will enable
Dynapower to increase its global exposure, invest in entry into new
markets, and successfully scale its business. Dynapower’s
capabilities strengthen Sensata’s expertise in energy storage and
power conversion across the commercial & industrial, and
specialty mobility end markets. The firms’ combined capabilities in
electrical protection, energy storage, battery management, and
power conversion provide a leading solutions capability.
“We are very pleased to bring Dynapower’s leading energy storage
and power conversion solutions into Sensata’s portfolio through
this acquisition,” said Jeff Cote, CEO and President of Sensata
Technologies. “Dynapower enables us to deliver highly engineered,
mission-critical power conversion systems to fast growing renewable
energy storage, industrial and defense customers and help drive our
Electrification growth vector.”
“My entire leadership team and I are very excited about joining
forces with Sensata, leveraging their global resources to further
scale our great business and accelerate the transition to green
energy,” said Adam Knudsen, Dynapower’s CEO.
Conference Call and Webcast
Sensata will discuss this acquisition on its previously
announced first quarter 2022 earnings call scheduled for 8:00 AM
eastern time today. The live webcast and subsequent replay of the
conference call will be available on the investor relations page of
Sensata’s website at http://investors.sensata.com. Investors can
also listen to the earnings call live via telephone by dialing
1-844-784-1726 or 1-412-380-7411 and referencing the Sensata Q1
2022 Financial Results Conference Call. A replay of the call will
be available until May 3, 2022. To access the replay dial
1-877-344-7529 or 1-412-317-0088 and enter confirmation code:
8713067.
About Sensata Technologies
Sensata Technologies is a global industrial technology company
striving to create a cleaner, more efficient, electrified and
connected world. Through its broad portfolio of sensors, electrical
protection components and sensor-rich solutions which create
valuable business insights, Sensata helps its customers address
increasingly complex engineering and operating performance
requirements. With more than 21,000 employees and global operations
in 13 countries, Sensata serves customers in the automotive, heavy
vehicle & off-road, industrial, and aerospace markets. Learn
more at www.sensata.com and follow us on LinkedIn, Facebook and
Twitter.
About Dynapower
Dynapower is a trusted leader in all types of power conversion
and energy storage solutions. Dynapower’s products energize and
strengthen vital industries such as hydrogen, e-mobility, energy
storage, mining, metal finishing and defense, all while helping to
shape a shared vision of a clean energy future. With headquarters
in South Burlington, Vermont, Dynapower designs, manufactures, and
tests a wide range of power conversion solutions while providing an
array of aftermarket services focused on continuous reliability and
efficiency.
Since 1963, Dynapower’s passion for meeting the toughest power
conversion needs has grown alongside an ever-expanding global
footprint. Dynapower collaborates with partners and clients to
fiercely greet energy challenges, shift the way the world uses
power, and advance the greater good of the planet. From government
agencies and the military to research institutions and businesses
of all sizes, Dynapower pushes the boundaries of science and
innovation to get the job done. Learn more at
www.dynapower.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding anticipated financial results
and liquidity. The words "will," "may," "designed to," "outlook,"
"believes," "should," "anticipates," "plans," "expects," "intends,"
"estimates," "forecasts" and similar expressions identify certain
of these forward-looking statements. The Company also may provide
forward-looking statements in oral statements or other written
materials released to the public. All statements contained or
incorporated in this press release or in any other public
statements that address operating performance, events or
developments that the Company expects or anticipates may occur in
the future are forward-looking statements. Factors that could cause
actual results to differ materially from these forward-looking
statements are discussed in the Company's Annual Report on Form
10-K for the year ended December 31, 2020, and its other Securities
and Exchange Commission filings. Future operating results will be
based on various factors, including actual industry production
volumes, the impact of COVID-19 on the Company’s business and the
global economy, commodity prices, the impact of restructuring
actions and the Company's success in implementing its operating
strategy. The forward-looking statements in this press release are
made as of the date hereof, and the Company does not assume any
obligation to update, amend or clarify them to reflect events, new
information or circumstances occurring after the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20220426005427/en/
Investor Contact: Jacob Sayer +1 (508) 236-1666
jsayer@sensata.com
Media Contact: Alexia Taxiarchos +1 (617) 259-8172
ataxiarchos@sensata.com
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