Ultralife Acquires Excell Battery For $23.5M; Bags $9.9M Contract For BA-5390 Batteries

Ultralife Corp ULBI has acquired Excell Battery Group for $23.5 million in cash. Excell is an independent designer and manufacturer of high-performance smart battery systems, battery packs, and monitoring systems to customer specifications.
Ultralife expects the transaction to be accretive on an EPS basis within twelve months. Excell generated revenues of $21.2 million for the trailing twelve-month period ended November 30, 2021.
"Importantly, Excell possesses experienced technical resources which we plan to utilize in progressing our global new product initiatives while adding a complementary line of highly engineered products that are costly to switch out," commented CEO Michael D. Popielec.
Ultralife held $15.9 million cash-on-hand as of September 30, 2021.
Earlier today, Ultralife issued a press release stating that it has received a firm-fixed-price IDIQ contract worth $9.9 million from the U.S. Government's Defense Logistics Agency (DLA) for its lithium manganese dioxide, non-rechargeable BA-5390 batteries.
The award consists of a three-year base contract with two one-year option periods.
Price Action: ULBI shares are trading higher by 5.57% at $5.50 on the last check Tuesday.