Ultralife Corporation will acquire Electrochem Solutions, Inc.

NEWARK, N.Y., Sept. 30, 2024 (GLOBE NEWSWIRE) — Ultralife Corporation (NASDAQ: ULBI) has entered into a stock purchase agreement to acquire all of the outstanding shares of Electrochem Solutions, Inc. (“Electrochem”), to reflect its condition – a state-of-the-art ISO certified technology and manufacturing facility for $50.0 million in cash from Integer Holdings Corporation (NYSE: ITGR), subject to customary working capital adjustments. The transaction is expected to close by the end of October. Ultralife expects to finance the transaction through its anchor lender.

Headquartered in Raynham, Massachusetts and with over four decades of experience in mission-critical battery technology, Electrochem designs and manufactures primary lithium metal cells and ultracapacitors and battery packs for energy, military and a variety of environmental, industrial and utility end markets in the all over the world. For the twelve months ended June 30, 2024, Electrochem reported revenues of $34 million. The transaction is expected to be accretive on a 2025 EPS basis.

“The acquisition of Electrochem supports our strategy to more fully leverage the operating leverage of our business model through efficiencies of scale and manufacturing costs,” said Mike Manna, president and CEO. “Electrochem has a leading customer base that has little if any overlap with Ultralife’s customers, long-term technical resources that we plan to leverage in the development of our global new product initiatives, and a complementary portfolio of high-tech thionyl chlorides, sulfur and bromine . cells and packs that may be commercially too costly to replace or replace. Therefore, we see this acquisition as an opportunity to create very attractive opportunities to increase revenue growth through enhanced cross-selling platforms and to expand our reach into adjacent underserved markets that require uncompromising safety, service, reliability and quality. Additionally, the combination of Electrochem and Ultralife creates achievable opportunities to increase gross margin by realizing vertical integration, supply chain synergies and lean initiatives. Finally, with Electrochem we increase our value to our customers and significantly strengthen our competitive position in end markets.”

Added Mr. Manna: “Acquisitions have been and remain an important element of our growth strategy, and with our financial leverage at manageable levels, we have intensified our efforts this year to identify high-quality acquisition candidates that fit our innovation and technology-driven culture and market expansion strategy. Electrochem ticks the boxes that are most important to us and we are delighted that Khristine Carroll will join us as senior vice president – ​​general manager of Electrochem upon closing. She is a dynamic, experienced executive who, since joining in May 2023, has been a driving force in expanding Electrochem’s commercial footprint and strategy, while improving operational and supply chain efficiency and strengthening its corporate culture. We look forward to her contribution to Ultralife’s global growth of our diversified battery and energy products businesses. We are ready to begin implementing our integration playbook immediately upon completion of the transaction and look forward to welcoming the Electrochem team to Ultralife.”

“Electrochem is well known and respected among its long-standing customer base for our consistently reliable, innovative and high-quality domestically sourced battery solutions,” said Khristine Carroll, CEO of Electrochem Solutions, Inc. “By joining Ultralife Corporation, we will be able to enhance our product offerings and customer-based support through a broader range of products and services, while continuing to focus on technological improvements and innovation advancements. This will provide us with opportunities for further growth, including further support in successfully implementing our current revenue and profitability plans for 2025. We are thrilled to have found a partner that shares our operating philosophy and strong commitment to both our colleagues and our valued customers.”

About Ultralife

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. With an engineering-based and collaborative approach to problem solving, Ultralife serves government/defense and commercial customers worldwide. Headquartered in Newark, New York, the Company’s business segments include battery and energy products and communications systems. Ultralife operates in North America, Europe and Asia. For more information, please visit www.ultralifecorporation.com.

This press release may contain forward-looking statements based on current expectations that involve certain risks and uncertainties. Potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, global acceptance of our new products and disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather or other factors beyond our control. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company’s analysis only as of today. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that may affect Ultralife’s financial results is included in Ultralife’s Securities and Exchange Commission (SEC) filings, including its most recent Annual Report on Form 10-K.