FORT LEE, N.J. /PRNewswire/ — Pioneer Power Solutions, Inc. (OTC: PPSI) (“Pioneer” or the “Company”), a manufacturer of specialty electrical transmission and distribution equipment for applications in the utility, industrial and commercial markets, today announced the acquisition of select assets from Pico Electrical Equipment, Inc. and Pico Metal Products, Inc. to form Pioneer Custom Electrical Products Corp. (“Pioneer CEP”).
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 named Geo Murickan, a well-established industry veteran, as President of the new subsidiary which will do business as Pioneer CEP. Mr. Murickan’s experience spans more than 20 years, principally at General Electric, and more recently at Myers Power Products, a major independent manufacturer of electrical switchgear products where he was executive vice president of sales and marketing.
Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, said, “The acquisition of Pico and the establishment of Pioneer CEP is well-aligned with our broader acquisition strategy, and serves to bolster our product offering, broaden our market opportunity and provide operating efficiencies with our other business units. Pioneer CEP will serve as our platform into the low voltage, manufactured-to-order market for circuit protection equipment, a segment we previously did not address and is expected to strengthen our overall value proposition to electrical distributors. Southern California is among the largest and most robust markets in North America, providing an ideal launching point for us to later serve all of California and the Southwest U.S. In addition, we expect this acquisition will help us up-sell our dry-type transformer products, and provide logistics-related cost savings for these and other of our products in the region. The Pioneer CEP acquisition fits our criteria of seeking organizations in specific product niches, having a potential for measureable operating efficiencies and improved financial performance through integration within the Pioneer group. We expect this new unit to become a meaningful contributor to our 2014 financial results.”Tagged with tED