Hammond Power Solutions Inc.

Hammond Power Solutions Inc.

November 29, 2007 17:42 ET

Hammond Power Solutions Inc. Announces Acquisition of Transformer Business

HPS to acquire Delta Group's transformer business assets

GUELPH, ONTARIO--(Marketwire - Nov. 29, 2007) - Hammond Power Solutions Inc. ("HPS")(TSX:HPS.A) today announced that it has signed a definitive agreement with Delta Group XFO Inc. and Delta Transformer of Canada (1999) Ltd. (collectively, the "Delta Group") to acquire all of the Delta Group's assets used by and in connection with the Delta Group's transformer business.

Delta Group's transformer business is involved in the design and manufacture of standard and custom dry type distribution and power transformers and has a reputation in the industry for product reliability and quality. Annual sales revenues approximate $40,000,000.

Bill Hammond, Chief Executive Officer of Hammond Power Solutions Inc. stated, "We are excited about the Delta acquisition, as it offers an opportunity for immediate Canadian market share expansion, provides additional manufacturing capacity and flexibility, as well as supports our business hedging strategies. Delta has an excellent reputation in the electrical industry for its engineered to order capabilities and quality."

The deal is expected to close in mid January, 2008 following receipt of Toronto Stock Exchange approval and completion of due diligence.

About Hammond Power Solutions Inc.

Hammond Power Solutions Inc. (TSX:HPS.A) is a North American leader for the design and manufacture of dry-type custom electrical engineered magnetics and is also a leading manufacturer of standard electrical dry-type transformers. Leading edge engineering capabilities, high quality products, and fast, responsive service to customers' needs have all served to establish HPSI as a technical and innovative leader in the electrical and electronic industries. HPSI has two manufacturing plants in Canada, one in the United States and one in Mexico.

This press release contains forward-looking statements. These statements are based on HPSI management's assumptions and beliefs in light of the information currently available to them. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. When relying on forward-looking statements to make decisions, HPSI cautions readers not to place undue reliance on these statements, as a number of important factors could cause actual results to differ materially from any intentions expressed in such forward-looking statements. HPSI does not undertake to update any forward looking statements that may be made from time to time by or on behalf of HPSI.

If you would prefer to receive press releases via email contact Investor Relations at: (ir@hammondpowersolutions.com).

Contact Information

  • Hammond Power Solutions Inc.
    W.G. (Bill) Hammond
    Chairman & CEO
    (519) 822-2441
    Hammond Power Solutions Inc.
    Chris R. Huether
    CFO & Secretary
    (519) 822-2441