Pioneer Power Solutions, Fort Lee-based manufacturer of electrical transmission, distribution and on-site power generation equipment, completed the sale of its liquid filled and dry type transformer businesses to Mill Point Capital, a middle-market private equity firm, for a base purchase price of $68 million.

Pursuant to the transaction, Pioneer sold all of Pioneer Transformers Ltd. and the companies comprising its Dry Type Transformer Group, which included Jefferson Electric Inc., Bemag Transformer Inc. and Harmonics Limited LLC.

The purchase price consists of $60.5 million in cash and the issuance of two subordinated promissory notes to Pioneer Power in the aggregate principal amount of $7.5 million. The purchase price is subject to customary post-closing adjustments, such as working capital, according to Pioneer Power Solutions.

"Selling this portion of our business for approximately 1.5 times our current market capitalization is an important step in creating shareholder value," Pioneer Chairman and Chief Executive Officer Nathan Mazureksaid in a statement.

Source: Pioneer Power Solutions