American Superconductor (AMSC) investor relations material

Deal rationale and strategic fit

• Acquisition targets a leading Brazilian transformer manufacturer, accelerating business growth and expanding into the high-growth Latin American market and utility customer base.

• Broadens product portfolio to include large power and distribution transformers for utilities and industrial sectors, complementing existing offerings focused on grid resiliency and power quality.

• Provides immediate access to Brazil, the largest electricity market in Latin America, and positions for broader regional expansion.

• Family ownership and management will remain, ensuring operational continuity and leveraging local expertise.

• Aligns with strategic priorities to drive profitable growth and increase market share.

Financial terms and conditions

• Total consideration is approximately $55 million in cash, $78 million in stock, and $29 million for land, with an additional earnout tied to doubling revenue or EBITDA within three years.

• Deal valued at about 2.4x expected 2025 revenue, plus land acquisition.

• Acquisition expected to be immediately accretive to earnings in the next quarter.

• Comtrafo's 2025 revenue expected at $55 million, with gross margins around 30% and operating margins exceeding 20%.

• Immediate addition of $85 million in backlog, with $55 million for the next 12 months.

Synergies and expected cost savings

• No immediate focus on cost synergies; primary goal is to scale the acquired business and leverage its established market presence.

• Expected to be accretive to revenue and earnings, with long-term potential for technology and cost optimization driven by customer needs and market expansion.

• Comtrafo's normalized gross margins expected at 30% and operating margins at 20%, in line with existing levels.