Pioneer Power Solutions, Inc., Fort Lee, N.J.-based manufacturer of specialty electrical transmission and distribution equipment for the utility, industrial and commercial markets, announced the acquisition of select assets from Pico Electrical Equipment, Inc. and Pico Metal Products, Inc. Those operations will be integrated into a new business, Pioneer Custom Electrical Products Corp.
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 Power said in a release announcing the deal.
Pioneer named Geo Murickan, a well-established industry veteran, as president of the new subsidiary, which will do business as Pioneer CEP. Murickan's experience spans more than 20 years, principally at General Electric, and more recently at Myers Power Products, an independent manufacturer of electrical switchgear products, where he was executive vice president of sales and marketing.
In addition, Pioneer Power announced increased earnings guidance for 2013. The company updated its full-year guidance, originally issued on April 1, 2013. Revenue guidance remains unchanged and is expected to be in the range of $89 million to $95 million for the full year of 2013, including $2-3 million in switchgear and switchboard apparatus-related revenue stemming from acquisitions completed in 2013.
"This increased bottom-line guidance reflects greater contributions from our transformer business, partially offset by long-term investments in operating expense overhead intended to support our future growth,” said Andrew Minkow, Pioneer's CFO. “Even with these investments in sales, management and engineering depth, we are still expecting higher profitability. This updated guidance also excludes potential future acquisitions and assumes we experience a higher effective tax rate in 2013 as compared to 2012. We continue to be enthusiastic about the opportunities we see in all of our markets and the operating leverage we are generating in our operating units."