EnerSys announced that it has entered into an agreement to acquire all issued and outstanding shares and certain assets of select entities belonging to the Alpha Technologies group of companies. Alpha generated $591M in revenue for the twelve months ending June 30 and adjusted EBITDA of $67M, or 11% adjusted EBITDA margin. The transaction enterprise value is 11.1x Alpha's LTM adjusted EBITDA and 8.1x adjusted EBITDA, including run-rate synergies, which is in line with prevailing industry multiples. The total acquisition consideration is $750M, which consists of $650M in cash, with the remaining $100M in either cash or EnerSys shares, depending on the average share price prior to closing. The cash consideration will be funded using cash, existing credit facilities and new debt while ENS shares will come from treasury stock. The equity component of total consideration may be decreased (i) at the election of Alpha if the closing VWAP is greater than $95.00, or (ii) at the election of the EnerSys if the closing VWAP is less than $65.00.
