TARPON SPRINGS, Fla., Dec. 13, 2006 (PRIME NEWSWIRE) -- Solomon Technologies, Inc. (OTCBB:SOLM) announced today that it has signed a letter of intent to acquire Deltron, Inc., a North Wales, Pennsylvania based manufacturer of power supplies and related equipment. Deltron provides precision linear and switching power supplies and power supply systems for applications where power density and functionality are critical. Deltron has manufacturing operations in Reynosa, Mexico.
The letter of intent contemplates that Solomon, through its Technipower subsidiary, will purchase the assets and certain selected liabilities of Deltron, for an undisclosed amount. The purchase price will be subject to increase or decrease based on changes in Deltron's working capital between October 31, 2005 and the closing date. Solomon will assume Deltron's trade payables and its accrued expenses as part of the transaction. The transaction is subject to the negotiation and execution of a definitive purchase agreement and the satisfaction of various closing conditions including a due diligence investigation and the negotiation and execution of agreements with certain Deltron personnel. While no assurances can be given as to when the acquisition may close, Solomon currently anticipates that the acquisition will close during the first quarter of 2007.
Solomon President Peter W. DeVecchis, Jr., said, "The acquisition of Deltron is another step in our plan to expand our Power Electronics Division around our core operations at Technipower. The combination of Technipower's high power, high reliability product lines in conjunction with Deltron's low power precision products should permit us to expand our cross selling efforts, open new market channels and broaden our systems capabilities." He continued, "In addition, we expect to gain significant cost advantages across all our operations from the addition of Deltron's manufacturing operations in Mexico. We expect to maintain some Deltron operations in Pennsylvania and add resources in Mexico as the business grows."
Information about Solomon Technologies, Inc.:
Solomon Technologies, Inc., through its Motive Power and Power Electronics divisions, develops, licenses, manufactures and sells precision electric power drive systems, including those utilizing its patented Electric Wheel, Electric Transaxle and hybrid and regenerative technologies as well as direct current power supplies and power supply systems requiring high levels of reliability and ruggedness for defense, aerospace, marine, commercial, automotive, hybrid and all electric vehicle applications.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Solomon Technologies, Inc. in this release that are not historical in nature, particularly those that utilize the terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes," or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which management has derived from the information currently available to it. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Important factors known to management that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in the company's filings with the Securities and Exchange Commission. The forward-looking statements contained in this release speak only as of the date hereof, and the company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.