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Pfingsten to sell Dynapower for $580m

Sensata Technologies has agreed to acquire Dynapower from Pfingsten Partners for $580 million in cash.

Sensata Technologies has agreed to acquire Dynapower from Pfingsten Partners for $580 million in cash. The deal is expected to close early in the third quarter of this year. Dynapower is a provider of energy storage and power conversion systems.

PRESS RELEASE

SWINDON, England–(BUSINESS WIRE)– Sensata Technologies (NYSE: ST), a leading industrial technology company and provider of sensor-rich solutions and insights for customers, today announced that it has agreed to acquire Dynapower Company, LLC (“Dynapower”), a leading provider of energy storage and power conversion systems to advance a resilient clean energy future from private equity firm Pfingsten Partners for $580 million in cash. The transaction is subject to regulatory approvals and other customary closing conditions. Sensata and Dynapower expect to complete the transaction early in the third quarter of 2022.

A trusted leader with nearly 60 years of experience, Dynapower provides energy storage and power conversion systems including inverters, converters, rectifiers and custom transformers for renewable energy generation, green hydrogen production, electric vehicle charging stations, and microgrid applications, as well as industrial and defense applications. A broad product portfolio, strong track record in the field, and commitment to customers makesDynapower a trusted global name in energy storage and power conversion.

Dynapower also provides aftermarket sales and service to maintain and monitor an installed base of equipment at customer locations. With decades of experience and application expertise in energy storage and power conversion systems for industrial applications, Dynapower is a key player in the clean energy transformation.

Dynapower is expected to generate over $100 million in annualized revenue in 2022 with approximately 20% EBITDA margins, while averaging annual growth in excess of 30% through 2026. Dynapower’s addressable markets are large and fast-growing, including energy storage and power conversion systems for grid-tied renewable power conversion – an $800M addressable market growing to $2.7B in 2030, and green hydrogen production, a $250M market experiencing a period of hyper growth fueled by large private and public investments expected to be a $2.6B addressable market in 2030. Dynapower’s recent wins with global blue-chip customers in green hydrogen rectifiers, commercial & Industrial power conversions solutions, and front of meter power conversion and energy storage position Sensata and Dynapower to help shape the clean energy transition for customers and partners.

The acquisition of Dynapower is a foundational addition to Sensata’s Clean Energy Solutions strategy and complements Sensata’s recent acquisitions of Gigavac, Lithium Balance and Spear Power Systems. Through its rapid expected revenue growth, Dynapower is expected to represent more than 50% of the $500 million of acquired revenue needed to reach Sensata’s goal of $2 billion in Electrification revenue by 2026, as outlined in Sensata’s recent Electrification Teach-In. Further to this, Sensata will enable Dynapower to increase its global exposure, invest in entry into new markets, and successfully scale its business. Dynapower’s capabilities strengthen Sensata’s expertise in energy storage and power conversion across the commercial & industrial, and specialty mobility end markets. The firms’ combined capabilities in electrical protection, energy storage, battery management, and power conversion provide a leading solutions capability.

“We are very pleased to bring Dynapower’s leading energy storage and power conversion solutions into Sensata’s portfolio through this acquisition,” said Jeff Cote, CEO and President of Sensata Technologies. “Dynapower enables us to deliver highly engineered, mission-critical power conversion systems to fast growing renewable energy storage, industrial and defense customers and help drive our Electrification growth vector.”

“My entire leadership team and I are very excited about joining forces with Sensata, leveraging their global resources to further scale our great business and accelerate the transition to green energy,” said Adam Knudsen, Dynapower’s CEO.

About Sensata Technologies
Sensata Technologies is a global industrial technology company striving to create a cleaner, more efficient, electrified and connected world. Through its broad portfolio of sensors, electrical protection components and sensor-rich solutions which create valuable business insights, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 21,000 employees and global operations in 13 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets. Learn more at www.sensata.com and follow us on LinkedIn, Facebook and Twitter.