ANN ARBOR ? Portable power fuel-cell developer Adaptive Materials, which has been awarded more than $45 million in US defense research contracts, has been acquired by United Kingdom-based Ultra Electronics Holdings for an undisclosed sum. In a press release, Adaptive Materials said it will continue to develop and manufacture its propane-powered fuel cell systems in Ann Arbor.

Ultra Electronics, which posted 2008 revenues of slightly more than $1 billion, has more than 100 distinct market or technology niches within its 24 businesses, focused on defense, security, transport and energy market sectors.

The combined companies will target the military, Recreational Vehicle and marine recreational markets. Adaptive Materials also will continue its work with the Department of Defense and other research agencies in the United States.

?Adaptive Materials has always been a privately-held company that has grown steadily through its work in the military space,? said Michelle Crumm, chief business officer, Adaptive Materials, said in a press release. ?Acquisition at this time by Ultra Electronics made perfect sense. Together, we can continue to invest in broadening the product portfolio to meet a growing demand from a wide range of customers for Adaptive Materials? fuel cells.?

Crumm and her husband Aaron, co-founders of Adaptive Materials, will maintain their positions with the company throughout this transition and the foreseeable future, the press release said. Michelle Crum could not be reached for further comment. The company will continue to grow its team here in Ann Arbor, including filling the 10 positions it currently has open, the press release said.

?Adaptive Materials is an excellent acquisition for Ultra Electronics, adding to the Group?s range of specialist energy solutions,? said Rakesh Sharma, chief operating officer of Ultra. ?Adaptive Materials has excellent IP, endorsed by its customers, and will benefit from Ultra?s proven abilities in high quality, volume manufacturing as it enters the production phase for its range of fuel cells.

?Ultra’s management approach of autonomous business within a corporate umbrella will provide Adaptive Materials employees with greater opportunities to achieve personal advancement while developing the business,? Sharma said.

Adaptive Materials is the first company to develop, demonstrate and deliver a portable, affordable, and fuel flexible solid oxide fuel cell (SOFC) system. The company offers 50 and 250-watt fuel cell systems that are powered by globally available and energy dense propane, butane and LPG. Adaptive Materials? fuel cell system provides portable power to the United States Armed Forces as well as industries including leisure, remote monitoring, and medical devices.

For more information, AdaptiveMaterials.Com

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