Arotech Corporation (Nasdaq:ARTX) announced today that it had acquired Epsilor Electronic Industries, a privately owned Israeli corporation. For more than 10 years, Epsilor has developed and sold rechargeable and primary lithium batteries and smart chargers to the military, and to private industry in the Middle East, Europe and Asia.
Arotech said that this acquisition would significantly expand its array of energy solutions for a variety of military applications. It originally announced its intention to of making the acquisition on October 1.
The purchase price for Epsilor is $7 million in cash, with an additional $3 million paid over the next three years. Epsilor management will continue to manage the company as a wholly owned subsidiary of Arotech.
With Epsilor, Arotech's battery-related business is projected to increase profitability in 2004. Epsilor's revenues in 2002 totaled $4.8 million, with a pre-tax profit of $1.7 million. 2003 revenue is projected at over $5 million, and pre-tax profit at $1.85 million.
Arotech plans to introduce the acquired lithium-based battery technology to its Auburn, Alabama battery plant, as a base for broadening its US military battery market. In parallel, the acquired company has already developed European and Asian military markets for its batteries, which Arotech will utilize to expand the reach of its BA-8180/U zinc-air battery. "With this acquisition we will be able to become a significant player in the worldwide emerging market of rechargeable power products for military applications, making us a larger, more diversified company that is better able to compete for military orders," said Robert S. Ehrlich, Arotech's Chairman, President and CEO.
Arotech also announced today that it had closed the transaction to acquire FAAC Incorporated of Ann Arbor, Michigan. FAAC is a provider of simulators, systems engineering and software products to the United States military, government and private industry.
Published by Globes [online] - www.globes.co.il - on January 14, 2004