AMSC buys New Jersey firm as part of $61M deal
Photo | Grant Welker
AMSC's Ayer headquarters
AMSC, the Ayer-based energy company formerly known as American Superconductor, has acquired NWL, a New Jersey-based energy equipment manufacturer, as part of a deal worth approximately $61.4 million.
The deal seeks to bolster AMSC’s growing presence in the defense sector, according to a company press release issued Monday.
AMSC paid $25 million in cash and approximately $31.4 million in stocks upon closing; the company will make an additional cash payment of $5 million, subject to various adjustments set in the stock purchase agreement.
“As we expand our military business, we believe NWL has the potential of multiplying our military footprint within the U.S. 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,” Daniel McGahn, chairman, president, and CEO of AMSC, said in the Monday press release. “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.”
NWL, originally short for Nothelfer Winding Laboratories, was founded in the 1930s as a transformer repair shop. Now providing energy-related equipment to industrial and military customers, the company has had a three-year revenue average of approximately $55 million per year.
Originally based in Devens, AMSC sold its former headquarters in 2018 after the company suffered an economic downturn due in part to the theft of trade secrets by a Chinese company.
Eric Casey is a staff writer at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
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