Holland & Knight, Pinheiro Neto, Reed Smith and Baker McKenzie advised on the deal
EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, has entered into an agreement to acquire all issued and outstanding shares and certain assets of select entities belonging to the Alpha Technologies group of companies (“Alpha”).
Based in Bellingham, Washington, Alpha is a global industry leader in the comprehensive commercial-grade energy solutions for broadband, telecom, renewable, industrial and traffic customers around the world. Alpha generated $591 million in revenue for the twelve months ending June 30, 2018 and adjusted EBITDA of $67 million, or 11% adjusted EBITDA margin. The transaction enterprise value is 11.1x Alpha’s LTM adjusted EBITDA (pre-synergies) and 8.1x adjusted EBITDA, including run-rate synergies, which is in line with prevailing industry multiples.
The total acquisition consideration is $750 million, which consists of $650 million in cash, with the remaining $100 million in either cash or EnerSys (ENS) shares, depending on the average share price prior to closing. The cash consideration will be funded using cash, existing credit facilities and new debt while ENS shares will come from treasury stock. The equity component of total consideration may be decreased (and the cash component correspondingly increased) (i) at the election of Alpha if the closing VWAP is greater than $95.00, or (ii) at the election of the EnerSys if the closing VWAP is less than $65.00.
Holland & Knight advised Enersys with Paul Jaskot (Picture), Elizabeth Burkhard, Samantha Peruto, Kristin Antario, Leah Messler and Nicole Martini.
In Brazil, Pinheiro Neto advised Enersys with Guilherme Leite, Franco Grotti, Alexandre Jorge, Tércio Chiavassa, Maurício Guidi, Cristiane Matsumoto, José Mauro Machado, Filipe Coube Ferraz.
Reed Smith advised Enersys with Leigh T. Hansson, James R. Tandler, Debra H. Dermody, Peter Teare and Yun (Joy) Zhang.
Baker McKenzie advised Alpha Technologies Inc. with Matthew Gemello, Heath Trisdale, John Peterson, Dominika Korytek, Creighton Macy y Arlan Gates. Asociados Adam O’Brien, Derek Gumm, Naoko Watanabe, Yana Ermak y Brian T. Polley.
Involved fees earner: Guilherme Leite – Pinheiro Neto; Franco Musetti Grotti – Pinheiro Neto; Alexandre Outeda Jorge – Pinheiro Neto; Tércio Chiavassa – Pinheiro Neto; Maurício Fróes Guidi – Pinheiro Neto; Cristiane Ianagui Matsumoto – Pinheiro Neto; José Mauro Decoussau Machado – Pinheiro Neto; Paul Jaskot – Holland & Knight; Samantha Peruto – Holland & Knight; Kristin Antario – Holland & Knight; Elizabeth Burkhard – Holland & Knight; Nicole Martini – Holland & Knight; Leigh Hansson – Reed Smith; Peter Teare – Reed Smith; James Tandler – Reed Smith; Yun Zhang – Reed Smith; Debra Dermody – Reed Smith; Matthew Gemello – Baker McKenzie; Heath Trisdale – Baker McKenzie; Naoko Watanabe – Baker McKenzie; Brian Polley – Baker McKenzie; John Peterson – Baker McKenzie; Dominika Korytek – Baker McKenzie; Adam O’Brien – Baker McKenzie; Derek Gumm – Baker McKenzie; Creighton Macy – Baker McKenzie; Arlan Gates – Baker McKenzie; Yana Ermak – Baker McKenzie;