Tag to buy Advanced Energy Systems

M+H Power Systems, a subsidiary of Sydney-based Tag Pacific, has entered into a conditional agreement to failed renewable energy player Advanced Energy Systems.

The acquisition price remains confidential at this time.

Tag chairman Peter Wise said the renewable energy sector was a strong growth opportunity for M+H and the acquisition of AES gave it an international presence in that sector.

"The acquisition will give M+H a research and development capability that will enable it to tap into sales opportunities in both the renewable energy sector and its more traditional areas of charging equipment and conventional power systems," he said.

AES is a provider of specialised power conditioning equipment widely used in renewable energy facilities.

It was put up for sale following the appointment of Grant Thornton partner Mervyn Kitay as administrator in August.

M+H Power is a supplier of batteries, emergency lighting, stand-by power systems and related equipment with branches and representation across Australia and New Zealand.

It will fund the acquisition from its existing cash reserves.

The acquisition is subject to a number of conditions, including a technology licensing agreement being entered in to that will make certain intellectual property available to allow AES to participate in further product development.