Advanced Energy Systems was put up for sale following the appointment of an administrator to Advanced Energy Systems Limited on 31 August 2004. Trading in shares in Advanced Energy Systems Limited has been suspended since the appointment.

M+H Power Systems is a supplier of batteries, emergency lighting, standby power systems and related equipment. Its acquisition of Advanced Energy Systems and its existing interest in Ice Corporation will give M+H Power a presence across the AC/DC spectrum, said Tag chairman Peter Wise.

“The Advanced Energy Systems brand is highly recognised internationally and has a strong presence in the global renewable energy market,” Wise said.

“M+H Power has identified the renewable energy sector as a strong growth opportunity and the acquisition of Advanced Energy Systems will provide M+H Power with an international presence in that sector. The acquisition will give M+H Power a research and development capability which will enable it to tap into sales opportunities in both the renewable energy sector and its more traditional areas of charging equipment and conventional power systems.”

The deal would deliver intellectual property and tangible assets to M+H Power and Tag expected the acquisition would be earnings-positive for M+H Power in the current financial year, according to Wise.

In the year to 30 June 2004, Advanced Energy Systems Limited reported revenue in excess of $9.5 million, but not all revenue was expected to continue under M+H Power’s ownership given that not all components of the business were being acquired and because of the unavoidable disruption caused by the appointment of an administrator.

M+H Power will fund the acquisition from existing cash reserves. An M+H spokesperson said the financial details of the transaction were about a week from being finalised.

The acquisition is subject to a number of conditions. Subject to the satisfaction of these conditions completion is expected to occur in early November.