KRG Capital Partners has acquired Palladium Energy, Inc., a provider of customized power solutions. This is KRG’s second investment in its portable power solutions “buy-and-build strategy,” which began in 2014 with the acquisition of ICCNexergy, Inc., a global designer and manufacturer of rechargeable power systems.
The two privately-held Chicago-based companies – Palladium Energy and ICCNexergy - will be combined to create “one of the world’s largest portable power solutions providers.” The newly formed company will target four key markets—commercial, industrial, medical and military/government. The company will be rebranded in the near future. They are not disclosing terms of the deal or company revenues.
Palladium’s president and CEO, John Gatti, will lead the newly combined company, as president and CEO effective immediately. Former ICCN president and CEO, Stephen McClure, will take on the role of non-executive chairman of the board.
“The combination of ICCNexergy and Palladium creates one of the world’s largest portable power integrators. It also significantly expands the brand’s position in key markets such as commercial, industrial, medical and military/government which further drives innovation and volumetric supply leverage for customers,” said Gatti.
“Further, in this particular merger - Palladium brings domain expertise in highly engineered battery packs and power supplies, while ICCNexergy brings domain expertise in battery packs, charging systems and power supplies,” he added. “Combined, they will offer complete power systems - battery packs, battery chargers, docking stations, power supplies and electromechanical assemblies - for next-generation devices.”
“The newly combined company expands its engineering, product development and qualification capabilities with over 300 degreed engineers, four PhD’s, and an expanded intellectual property portfolio that promises to drive the industry with improved safety and performance,” he continued.
The new company also is expected to meet rising demand for portable power with its combined facilities. ICCN and Palladium have a global footprint and supply chain across nine countries, including 14 facilities spanning four continents and more than 435,000 square feet of manufacturing space. The degreed engineers and PhD’s have expertise in lithium-ion and solid state battery technologies, multi-chemistry charging and next-generation power supply solutions for mission-critical applications.
ICCNexergy has offices, design centers, manufacturing and testing facilities in the U.S., China, Mexico, Singapore and Germany. Palladium has offices and manufacturing facilities in the U.S., Brazil, China, South Korea, Taiwan and Malaysia.
The majority of the company’s revenues comes from direct business from large OEMs and ODMs. Less than one percent of its business goes through the channel.