February 28, 2007 - Dow Jones: Weston Presidio's Battery Co. Recharges with Purchase

Micro Power Electronics Inc., a portable battery maker owned by Weston Presidio, is acquiring a smaller competitor, Selfcharge Inc., in an effort to round out its product offerings.

The deal will add about $25 million to Micro Power's current annual revenue of more than $50 million, and the combined company expects to have over $100 million in revenue in the next two to three years, said Micro Power President and Chief Executive Greg Love.

Micro Power is financing the deal with additional equity from Weston Presidio, as well as debt. Other financial details, such as the purchase price, weren't disclosed.

The purchase expands Micro Power's product lines to include more charger offerings. The Beaverton, Ore.-based company has historically provided rechargeable batteries, and had to purchase chargers from companies including Selfcharge, Love said. The transaction therefore enables Micro Power to offer "complete solutions," he said.

The acquisition also allows Micro Power and Selfcharge to stop competing with each other. Over the past few years, Selfcharge, of Redmond, Wash., has been trying to strengthen its battery technology, and started going after the same customers as those of Micro Power.

The combination is expected to benefit Selfcharge as well, according to company president and CEO Loren Lyon. "We have lost sizeable orders because we are too small," Lyon said. The company's customers, which primarily operate in the medical sector, want to deal with a supplier that won't go away in a few years. Having $100 million in revenue helps to ensure that the combined business is big enough to stay standalone, Lyon said.

Selfcharge also looks to leverage Micro Power's much larger sales force in selling its products.

The combined company will stack up more strongly against competitors like International Components Corp., Love said. Most other businesses in the space are smaller, regional players, leaing plenty of room for further add-on opportunities, he said.

Weston Presidio, which acquired Micro Power in March 2006 for an undisclosed sum, intends to grow the company's revenue to up to $300 million in the next five years or so, according to Love. The entire U.S. rechargeable battery business represents a $1 billion market, according to Love.

Reach Weston Presidio at 617-988-2500.