AMSC acquires Comtrafo for $55M in cash, $78M in stock

AMSC (AMSC) announced that it has acquired Comtrafo Industria de Transformadores Eletricos, a privately held company based in Brazil that manufactures and supplies utility-scale power and distribution transformers. At closing, AMSC purchased all of the issued and outstanding shares of Comtrafo for R$300M, approximately $55M, in cash and issued 2,417,142 restricted shares of AMSC common stock with a value of approximately $78M. AMSC also purchased real property including two factories with over 100 acres of land for approximately R$155.6M, approximately $29M, in cash. As part of the transaction, in the future the selling stockholders may earn an additional earnout in cash upon the achievement of specified earnings before interest, taxes, depreciation, and amortization objectives during the three years following the closing. Looking ahead into calendar year 2026, Comtrafo has approximately $85M in total backlog with about $55M falling in the 12-month backlog.