Ayer-based energy solutions company AMSC has acquired ️Comtrafo Indústria de Transformadores Elétricos S.A., a Brazilian transformer manufacturer.
The acquisition, worth $133 million, will see AMSC purchase Comtrafo’s outstanding shares for $55 million in cash and obtain nearly 2.5 million Comtrafo restricted shares, valued at approximately $78 million.
Additionally, AMSC has purchased two Comtrafo properties and more than 100 acres of land, paying approximately $29 million in cash, according to a Wednesday press release from the energy company.
The deal coincides with Brazil’s government commitment to invest more than $20 billion in the country’s electricity grid system, Daniel McGahn, AMSC chairman, president and CEO, said in the release. Brazil’s yearly electricity grid market is worth an estimated $1.5 billion, he said.
AMSC anticipates the acquisition will broaden its grid business while elevating its customer value.
“Comtrafo is a leader in Brazil’s critical power infrastructure market for power and distribution transformers,” McGahn said in the release. “The addition of Comtrafo to AMSC’s grid solutions is expected to accelerate further profitability and expand our offerings of proprietary products to meet growing utility and industrial demand across the full power platform, from power generation to transmission, distribution, and industrial end-use.
️Comtrafo currently employs about 580 workers, according to a Wednesday filing with the U.S. Securities and Exchange Commission. Operating out of approximately 350,000 square feet of manufacturing space, the company generated about $50 million in revenue in the 2024 calendar year, according to the filing.
Established in 1987, AMSC provides power electronics and superconductor systems for power grids, ships, and wind turbines, according to its website. It operates facilities throughout North America, Asia, Australia, and Europe.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
