Sevcon Acquires Bassi Srl; Terms to be Reported in 8K

Sevcon, Inc. SEV today announced that it has acquired privately held Bassi S.r.l. Based near Bologna, Italy, Bassi designs and manufactures battery chargers for electric vehicles. The Bassi product line includes fast charging technologies suitable for a wide range of electrification markets, including rapid, high voltage and high power sectors. Bassi also designs and manufactures power management and uninterrupted power source (UPS) systems for industrial, medical and telecom applications, as well as electronic instrumentation for battery laboratories. In 2015, Bassi generated approximately $16 million in annual sales and was profitable. The acquisition is expected to be immediately accretive to Sevcon's earnings in the first year of combined operations, excluding transaction costs. Bassi's executive team will continue to manage the business. Bassi will operate as a division of Sevcon from its present facility and no changes in employment levels are anticipated. Acquiring Bassi will enable Sevcon to: Expand its addressable share of the high-growth vehicle electrification market by approximately 35% Integrate battery charger and power management technology with Sevcon's new GEN5 family of motor controllers to offer a unified suite of electronics for on-road vehicles Pursue opportunities to cross-sell Sevcon products to Bassi customers Sell Bassi's products through Sevcon's sales channel, including its joint venture in China, to access the Company's large global customer base Enhance earnings by adding an immediately accretive business "This acquisition is an important milestone for Sevcon that we believe will accelerate our strategic growth and create significant long-term value for our stockholders," said Sevcon President and Chief Executive Officer Matt Boyle. "Battery charging and power management represent a rapidly growing sector of the electrification market that is highly complementary to Sevcon's products. Customers regularly ask for charging solutions in conjunction with our new Gen5 motor controller line, especially in high voltage and high power applications. Bassi has world-class technology that offers an attractive integration opportunity with the Gen5. By offering customers a broader product portfolio that eliminates motor controller/battery charger interoperability concerns, we believe we can secure a greater share of the on-road and industrial electrification markets." Bassi Srl Chief Executive Officer Andrea Bassi said, "We believe this transaction is an opportunity to combine two outstanding and complementary organizations. Sevcon's 50-plus year record at the forefront of electric vehicle control technology mirrors our more than 40 years of experience in battery charging and power management. Both companies are recognized globally for their commitment to innovation and customer service. Operating as part of Sevcon will enable Bassi to grow faster than it could on its own, while providing Bassi customers with greater access to Sevcon's industry-leading control technologies. Most important, we are joining an outstanding company with a history of consistent achievement and extraordinary opportunities for future growth." The acquisition was funded with cash provided under a five-year term loan facility provided by the New York City branch of the Italian bank Monte dei Paschi di Siena and Sevcon equity.