Power Solutions International, Inc., Acquires Professional Power Products, Inc.

WOOD DALE, Ill. (April 1, 2014) – Power Solutions International, Inc., announced that it acquired Professional Power Products, Inc. (PPPI), a designer and manufacturer of large, custom-engineered integrated electrical power generation systems serving the global diesel and natural gas power generation market. PPPI specializes in power generation systems for both standby and prime power applications. Each integrated generator system is a pre-assembled, modular, fully integrated generator set shipped directly to the OEM or end user. The PPPI product portfolio also includes switchgear, control panels, load banks, mobile power trailers and UL Listed tanks. The company acquired all of the outstanding capital stock of PPPI for an initial cash purchase price of $46 million. In addition, the company will issue to the sellers between $5 million and $15 million in the company's common stock, valued at $76.02 per share, based upon PPPI's 2014 operating results. The cash portion of the transaction is being financed initially with the company's bank credit facility. To facilitate the transaction, the company entered into an amended and restated agreement with Wells Fargo Bank, N.A. increasing its revolving line of credit from $75 million to $90 million, among other things. Excluding one-time transaction, integration and purchase accounting related costs, the transaction is expected to be accretive to the company's results in 2014. The earnings per share impact also will be subject to the accounting allocation of the purchase price and contingent consideration. "We are delighted with the acquisition of PPPI and the tremendous opportunity it presents us," stated Gary Winemaster, chairman and chief executive officer of Power Solutions International, Inc. "PPPI brings us a talented management team and a strong complementary product offering. This, along with PSI's expertise in power systems technology and extensive customer relationships, creates a remarkable combination that should expand our customer reach and position us very well for growth in the years ahead." Power Solutions International, Inc. designs, engineers and manufactures emissions-certified, alternative-fuel power systems.