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Western Reserve Partners Advises PECO II, Inc. in Acquisition by Lineage Power Holdings, Inc. May 18, 2010 Western Reserve Partners LLC is pleased to announce that it represented PECO II, Inc. (NASDAQ: PIII) in its acquisition by Lineage Power Holdings, Inc., a portfolio company of The Gores Group, for $5.86 per share in cash. The transaction represents a 51% premium over the closing share price the day before announcement. Western Reserve Partners also rendered a fairness opinion to the Board of Directors of PECO II in connection with the transaction. Leading the assignment for Western Reserve Partners were Managing Director Joseph G. Carson and Director Charles V. Aquino, supported by Vice President Andrew P. Male and Analyst David I. Mayland. “We advised PECO II’s Board of Directors regarding their strategic alternatives for nearly two years, and we’re very pleased with the successful outcome,” said Mr. Carson. “While the M&A and financing markets experienced unprecedented volatility during this period, the management team at PECO II did an excellent job navigating the Company through the storm and executing its growth strategy. As a result, we were able to draw significant strategic interest into the process and maintain a highly competitive environment until the very end. It was an honor to assist the Board of Directors in delivering a premium valuation to the shareholders.” PECO II, headquartered in Galion, Ohio, provides engineering and on-site installation services and designs, manufactures, and markets communications power systems and power distribution equipment. As the largest independent full-service provider of telecommunications power systems, PECO II provides total power quality and reliability solutions, and supports the power infrastructure needs of communications service providers in the local exchange, long-distance, wireless, broadband and Internet markets. Headquartered in Plano, Texas, Lineage Power Corporation, a Gores Group company, traces its 95+ year heritage of patented innovation to AT&T, Bell Labs, Lucent Technologies and Western Electric. The first name in power, Lineage delivers reliable and intelligent power conversion solutions with energy-efficient AC-DC power supplies, DC-DC board-mounted power modules, telecom energy systems, and custom power products backed by local field expertise in 25+ locations worldwide. The Gores Group, headquartered in Los Angeles, California, is a leading private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. Mr. Aquino added, “The combination of PECO II and Lineage represents an ideal situation. Lineage’s extensive North American engineering and product qualification infrastructure, coupled with PECO II’s extraordinary services platform, now creates one of the largest and most capable professional services organizations serving the North American telecom market.” Of Western Reserve Partners’ involvement, Mr. Heindel said, “The team at Western Reserve did an outstanding job in advising PECO’s senior management and Board of Directors as to our strategic alternatives. The combination with Lineage represents the best strategic outcome for all of our stakeholders. Western Reserve’s keen understanding of our business model and competitive landscape, together with their expertise and perseverance in maintaining a competitive process in a very difficult M&A environment, were essential in delivering superior value to our shareholders.” About Western Reserve Partners |
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