Pioneer Power Acquires Pico Electrical Equipment to Create New Business Unit

Pioneer Power Solutions Inc., Fort Lee, N.J.-based manufacturer of specialty electrical transmission and distribution equipment for the utility, industrial and commercial markets, announced the acquisition of select assets from Pico Electrical Equipment Inc. and Pico Metal Products Inc. Those operations will be integrated into a new business, Pioneer Custom Electrical Products Corp.

Pico, a manufacturer of low-voltage switchboards, panelboards and custom electrical enclosures, is based in the greater Los Angeles metro area and primarily serves the Southern California market from its 40,000-square-foot facility. Pioneer has retained Pico’s existing 14 employees and has commitments from an additional six professionals who are expected to augment the unit’s selling, engineering and manufacturing activities, Pioneer Power said in a release announcing the deal.

Pioneer named industry veteran Geo Murickan president of the new subsidiary, which will do business as Pioneer CEP. Murickan’s experience spans more than 20 years, principally at General Electric, and more recently at Myers Power Products, an independent manufacturer of electrical switchgear products, where he was executive vice president of sales and marketing.

Pioneer Power also announced increased earnings guidance for 2013. Revenue expectations held in the $89 million to $95 million range for the full year of 2013, including $2 million to $3 million in switchgear and switchboard apparatus-related revenue stemming from acquisitions completed in 2013, but the company expects earnings of $0.86 per share versus $0.80 previously estimated.

“This increased bottom-line guidance reflects greater contributions from our transformer business, partially offset by long-term investments in operating expense overhead intended to support our future growth,” said Andrew Minkow, Pioneer’s CFO. “Even with these investments in sales, management and engineering depth, we are still expecting higher profitability.”