This man has just sold his Cork company in a huge €15m deal
Power supply manufacturer Excelsys has been snapped up by US giant Advanced Energy.
CORK-BASED POWER supply manufacturer Excelsys has just been snapped up by a US company listed on the Nasdaq in a huge €15.5 million deal.
US-based Advanced Energy announced that it acquired Excelsys in an all-cash transaction for €15.5 million. Further transaction terms were not disclosed.
Advanced Technology develops power technologies to manufacture a range of products, including semiconductors, data storage products and solar cells.
The firm is listed on the Nasdaq exchange in the US. It employs about 1,400 people around the world and had sales of almost $420 million (€369 million) in 2015.
Excelsys, which is based in Eastgate Business Park, near Cork city, employs about 30 people. It had revenues of just over €10 million in 2016 after recording a profit of €1.5 million in 2015.
Excelsys leader and former CEO Gary Duffy said that the Irish company is “excited” to join Advanced Energy.
“Through the combined companies, our customers will have access to a host of additional products and services as we work together to expand Advanced Energy’s leading position worldwide,” he said.
Former Excelsys CEO Gary Duffy
Advanced Energy CEO and president Yuval Wasserman said that the company’s decision to acquire Excelsys was part of a move to add “new power products and applications”.
“Excelsys joins our specialty power organisation, increasing our presence in new areas within medical equipment, metrology and general industrial applications.”
Excelsys makes products that safely convert AC electricity currents into DC currents.
Electrical currents
The technology allows voltage from a power supply to be used to power a product. An everyday example of a simple AC to DC converter is a mobile phone charger.
Excelsys’ technology is used to convert currents for much larger equipment, and allow them to be powered. The Irish company’s products have been used by the likes of Samsung and Siemens.
A spokesman for Excelsys said: “We work on the power supply to drive larger equipment, like MRI scanners or industrial equipment.”
He added that it is “business as usual” for Excelsys, although he said that the firm will now be looking to grow as part of Advanced Energy.
An MRI machine
“This deal is about investment. This acquisition is about expanding our penetration into the markets that we have,” he said.
Management buyout
Excelsys was set up in 1999 by brothers Frank and Séamus Devitt. By 2006 it was struggling, having recorded losses for a few years in a row.
Duffy, who was an advisor to the company while it was being established, came back to lead the company and presided over a turnaround in its fortunes.
By 2015 he owned a 20% stake in Excelsys. Duffy led a management buyout of the business in October 2015, as he and other senior managers took control of the firm.
According to the Excelsys’ latest annual return, Duffy was the company’s largest shareholder as of the end of 2015, holding about a third of the business’ shares.
Other shareholders include the Devitt brothers and state investment body Enterprise Ireland.
The firm made a profit of €1.5 million in its 2015 financial year to bring accumulated profits to more than €3.6 million.
