PACIFIC SCIENTIFIC ACQUIRES POWERTEC INDUSTRIAL CORP.
NEWPORT BEACH, Calif., Aug. 2 /PRNewswire/ -- Pacific Scientific Co. (NYSE: PSX) has acquired Rock Hill, S.C.-based Powertec Industrial Corp., a leader in the fast-growing market for brushless DC motors and drives. The acquisition of the privately held Powertec, effective immediately, will add approximately $20 million annually to Pacific Scientific sales of motors, generators and controls, bringing that line of business to more than $95 million annually. It also extends the power range of Pacific Scientific product line of brushless DC motors from approximately 20 HP to approximately 600 HP. The purchase price was approximately $15 million; exact terms were not disclosed. Pacific Scientific Chairman, President and Chief Executive Officer Edgar S. Brower said, "With this acquisition, Pacific Scientific will be, to the best of our knowledge, the world's largest producer of industrial brushless motors and controls outside the market for machine- tool applications." He said that sales of brushless motors have been growing at 30 percent per year at both Pacific Scientific and Powertec, and represent on of the fastest-growing product categories in today's market for electrical equipment, the company's largest business segment. Powertec is the only producer of brushless DC motors and drives in power ranges up to 600 HP. These motors, available only over the past five years, are used as adjustable speed drives in equipment designed for plastic extruding, wire drawing, textiles, cement making, glass making, paper converting and other applications requiring high power and accurate speed control. Powertec's success with both OEMs and plant engineers is attributable to its better speed control accuracy, higher efficiency and lower maintenance cost, when compared to motors of similar horsepowers using older technologies. The superiority of Powertec motors and controls is attested to by the fact that 30 percent of its sales originates in Europe and the Pacific Rim. Powertec will continue to market its products under the same name, in its current locations. No change in staffing is anticipated. It is headquartered in Rock Hill, with a manufacturing facility in Juarez, Mexico. Powertec will be headed by its new president, Roy B. Brown, 46, currently a Powertec officer; Brown will report to Ronald B. Nelson, 53, vice president of Pacific Scientific and president of the company's Motor & Control Division, headquartered in Rockford, Ill. Powertec was founded in 1988 by Dr. Walter E. Rudisch and Jacqueline D. Rudisch. Dr. Rudisch is a widely recognized expert in electric motors who will continue to advise the company in planning and marketing. Pacific Scientific designs, manufactures and markets electrical equipment and aircraft safety equipment. It recently reported record sales of $49.9 million for its second quarter ended June 25, 1993, an increase of 15 percent over the pervious year's second quarter. Earnings for the period rose by 34 percent to $1.6 million, or 30 cents per share. The company has made numerous acquisitions, most recently the acquisition of Unidynamics/Phoenix Inc., with approximately $13 million in annual sales, from Crane Co. on April 2, 1993. -0- 8/2/93 /CONTACT: Richard V. Plat of Pacific Scientific, 714-720-1714; or Joseph Allen of South Coast Group, 714-252-8440, for Pacific Scientific/ (PSX)
CO: Pacific Scientific Co.; Powertec Industrial Corp. ST: California, South Carolina IN: CPR SU: TNM
JB-LM -- LA004 -- 8122 08/02/93 07:02 EDT
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|Date:||Aug 2, 1993|
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