American Superconductor Corporation (AMSC) has closed a $162 million deal to acquire Comtrafo Indústria de Transformadores Elétricos S.A., a Brazilian manufacturer of high‑performance utility‑scale power and distribution transformers. The transaction consists of R$300 million (about US$55 million) in cash, 2,417,142 restricted shares of AMSC common stock valued at roughly US$78 million, and an additional R$155.6 million (about US$29 million) for two factories covering more than 100 acres.
Comtrafo is projected to generate US$55 million in revenue for calendar year 2025, with normalized gross margins around 30 % and operating margins near 20 %. These figures are comparable to AMSC’s recent performance, which saw Q2 FY2025 revenue of US$66 million and gross margins above 30 %, and Q3 FY2025 revenue of US$65.86 million. The acquisition therefore adds both top‑line growth and margin‑stable revenue to AMSC’s portfolio, positioning the company to capture a share of Brazil’s expanding grid market.
The deal expands AMSC’s Grid portfolio into Brazil and the broader Latin American region, where the government has earmarked more than US$20 billion for grid upgrades. CEO Daniel P. McGahn said the transaction “positions AMSC to serve a critical power infrastructure market in Brazil and accelerate growth in Latin America.” The acquisition aligns with AMSC’s strategy to broaden its product suite and geographic reach, reinforcing its position as a comprehensive power‑resiliency provider for utilities, data centers, and industrial customers.
The transaction includes a potential earnout structure tied to EBITDA targets, and AMSC plans to integrate Comtrafo’s operations and management into its existing manufacturing and sales framework. While specific integration milestones are not disclosed, the company expects to leverage Comtrafo’s established manufacturing footprint and local market knowledge to accelerate deployment of its grid solutions.
Brazil’s grid modernization effort, driven by the need to integrate renewable energy and improve reliability, presents a significant opportunity for AMSC. The acquisition gives the company immediate access to a market with substantial government investment and a growing demand for high‑performance transformers, positioning it to capture a larger share of the region’s power infrastructure spend.
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