American Superconductor has consolidated its position as wire supplier to the major cable makers with the acquisition of Nordic Superconductor Technologies A/S, a subsidiary of NKT Holding A/S of Denmark. NST has developed and marketed high temperature superconductor (HTS) wire to customers in Europe, Asia and North America.
AMSC is acquiring all NST assets including patents, manufacturing equipment, stock materials, work-in-process, and know how. NST’s wire manufacturing in Denmark will be shut down and incorporated into AMSC’s operations.
NKT will receive 546 000 shares of AMSC Common Stock valued at $2.1 million. No debt or other liabilities are to be assumed. NKT has agreed to hold the shares for at least two years.
For both companies the deal is strategically logical. AMSC get proven wire making assets and, through NKT’s former wire customers, an expanded customer base. NKT Holding will give up the wire manufacturing business to a powerful competitor and instead focus on the marketing of cable and cable systems through NKT Cables, which has successfully demonstrated an HTS cable system – the world’s first – in the Denmark grid, and through its collaboration with Southwire in the US.
