TriWest Capital-backed Lithion Power acquires Aved Electronics

Lithion Power Group, a portfolio company of TriWest Capital Partners, has acquired Aved Electronics, a North Billerica, Massachusetts-based battery pack manufacturing, cable and harness assembly and electro-mechanical box-build business.

Terms weren’t disclosed for the deal, which was done in partnership with members of Aved’s management team and existing shareholders.

Established in 1979, Aved primarily serves the medical, defence, robotics and communications industries in the United States.

Lithion, a Calgary-based manufacturer of lithium cells and packs for use in the oil and gas drilling sector, said the acquisition expands its product offering and industry reach.

Formerly known as HPC Energy Services, Lithion secured an investment in 2018 from TriWest, a Canadian mid-market private equity firm.

PRESS RELEASE

Lithion Power Group Expands Product Offering and Industry Reach with the Acquisition of Aved Electronics

Calgary, Alberta, August 2019

TriWest Capital Partners (“TriWest”) is pleased to announce that Lithion Power Group (a Fund V portfolio company), a leader in the manufacturing of lithium cells and packs for use in the oil & gas drilling industry, announced that it has acquired Aved Electronics from its existing shareholders. The investment was made in partnership with various members of Aved’s management team and existing shareholders.

Established in 1979 and located in North Billerica, Massachusetts, Aved is an experienced battery pack manufacturing, cable and harness assembly and electro mechanical box-build business that primarily serves the medical, defense, robotics and communications industries in the United States. Aved is a trusted value add partner with its customers, has a strong reputation for product quality and serves customers in highly regulated industries. Aved manufactures lithium ion battery packs that are utilized in the development and production of high reliability battery applications such as medical defibrillators, CAT scan machines, MRI machines, medical analyzers, fighter jets, Humvees, and other related products. Additionally, Aved assists customers in the design and production of electronic assemblies ranging from power distribution panels to full box-builds. Aved’s technical staff is available to assist in every phase of cable assembly requirements, from identification of low cost alternatives for bill of materials to determining appropriate testing procedures for the complete assembly. Aved provides a full range of engineering services to support the wire & cable harness, box-build, and battery power segments of the market.

The acquisition of Aved provides significant end-market diversification for Lithion and will allow the combined business to leverage the medical and military market knowledge of the Aved team to develop Lithion’s sales pipeline. The transaction offers Aved the opportunity for continued growth and will allow Aved to expand its operations, customer base and product offerings by leveraging Lithion’s experience in both cell manufacturing and battery pack assembly.

Lithion’s President and CEO Tyler Armstrong said the combination of Lithion and Aved brings together two very experienced battery cell and pack manufactures as well as the product knowledge and technology of two leaders in their fields. “As a result of this transaction, Lithion will expand its product offering into new industries creating a stronger and more diverse business going forward. We look forward to strengthening our operations through extension of the technical capabilities, supply chain, and expansion of product offerings through the combined Lithion-Aved team.” Mr. Armstrong said.

About Aved Electronics:

Headquartered in North Billerica, Massachusetts, Aved Electronics manufactures battery packs, cable and harness assemblies and electro mechanical box-builds for use in the medical, defense, robotics and communications industries in the United States.

About Lithion Power Group:

Founded in 1998 and based in Calgary, Alberta, Lithion Power Group (formerly HPC Energy Services) is in the business of designing, developing, manufacturing and selling primary lithium thionyl chloride, lithium sulfuryl chloride, lithium CFX and lithium CFX Mno2 cells and packs. Lithion manufactures primary lithium cells specifically designed to work in high vibration/shock environments with temperature ratings of up to 225°C. In addition to cells, Lithion also assembles customized battery packs primarily using internally manufactured cells. Lithion’s battery pack products include data monitoring and transmission capabilities specifically designed to allow oil & gas customers to monitor downhole drilling conditions. These cells and battery packs are primarily used in the oil & gas drilling industry. Lithion is a market-leading, mission-critical power solutions provider with a highly differentiated technology built over years of field research and development and close interaction with end users.

About TriWest Capital Partners:

Founded in 1998 and based in Calgary, Alberta, TriWest is one of Canada’s leading private equity firms, having raised over $1.25 billion in committed capital through five funds. TriWest makes significant equity investments in profitable companies and works in partnership with management to generate superior financial returns through the pursuit of growth opportunities and a focus on operational excellence. TriWest provides more than just capital. The principals of TriWest have significant operational and financial expertise, making us effective partners in creating shareholder value. For more information about TriWest, please visit www.triwest.ca.