Pioneer Sells Pioneer Custom Electrical Products Business Unit, Including E-Bloc

FORT LEE, N.J.–(BUSINESS WIRE)–Pioneer Power Solutions, Inc. (Nasdaq: PPSI), a leader in the design, manufacture, service and integration of electrical power systems, distributed energy resources, power generation equipment and mobile electric vehicle charging solutions, today announced it has sold its Pioneer Custom Electrical Products, LLC business unit to Mill Point Capital LLC, a middle-market private equity firm located in New York City, for $50 million in a cash and equity transaction.

PCEP is the Company’s Electrical Infrastructure business, which provides energy solutions that allow users to effectively and efficiently protect, control, transfer, monitor and manage their electrical energy usage and requirements. PCEP markets many of these solutions under the “E-Bloc” brand.

In a separate press release, Mill Point announced the formation of Voltaris Power LLC (“Voltaris”), an electrical power solutions platform created by acquiring two distinct entities, PCEP and Jefferson Electric, in two independent transactions. Mill Point expects the combination of PCEP and the Jefferson Electric transformer business to allow Voltaris to more effectively serve electric power end markets that are at the heart of the energy transition and re-electrification of America. Pioneer will also receive a minority equity stake in Voltaris as part of the transaction.

Nathan Mazurek, Pioneer’s Chairman and Chief Executive Officer, commented, “The divestiture of our E-Bloc business is another critical step forward in the strategic transformation process we initiated in 2022. Pioneer is now solely focused on the growth of our Critical Power and eMobility business to fuel its larger potential. With additional capital we are well-positioned to continue to advance innovative solutions that address the growing grid gap challenges across the U.S. and capture an ever-growing share of a massive market that has yet to be fully addressed.

“We are confident that as part of the new Voltaris platform, the PCEP team will continue to build the business as a leader in the rapidly deployable microgrid, EV charging infrastructure, and unit substations. We expect to continue to collaborate on solutions and combine technologies where they benefit mutual growth and are very pleased to be significant equity participants in this new electrical equipment platform.”

Key Terms of the Agreement

The sale includes a total cash consideration of $48 million and $2 million in equity of Pioneer Investment LLC and the assumption of certain liabilities. Under the terms of the agreement, the Company will contribute 4% of its equity in Pioneer Investment LLC and receive a minority equity ownership position. In addition, Mr. Nathan Mazurek will serve as a member of the Board of Directors of Pioneer Investment LLC. The Company will outline the strategic vision for its business going forward and discuss the use of proceeds and 2025 revenue and profit guidance in a conference call when it reports its third quarter financial results in the next couple of weeks.

About Mill Point Capital LLC

Mill Point Capital LLC is a private equity firm focused on control investments in lower-middle market companies across the Business Services, Industrials and IT Services sectors throughout North America. Mill Point’s experienced team of investors, Executive Partners and Functional Experts seek portfolio company value enhancement through rigorous implementation of transformative strategic initiatives and operational improvements. Mill Point is based in New York, NY. For more information, please visit www.millpoint.com.

About Pioneer Power Solutions, Inc.

Pioneer Power Solutions, Inc. is a leader in the design, manufacture, integration, refurbishment, service and distribution of electric power systems, distributed energy resources, power generation equipment and mobile EV charging solutions for applications in the utility, industrial and commercial markets. To learn more about Pioneer, please visit its website at www.pioneerpowersolutions.com.