Bel Agrees to Acquire Cinch Connectors from Safran S.A. for $39 Million
December 28 2009 - 5:15PM
Business Wire
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) announced today that
it has agreed to acquire Cinch Connectors from Safran S.A.
(ENXTPA:SAF), a leading French industrial group, for $37.5 million
in cash plus approximately $1.5 million for the assumption of
certain expenses. The transaction will be funded with cash on
hand.
Headquartered in Lombard, Illinois and with manufacturing
facilities in Vinita, Oklahoma, Reynosa, Mexico and Worksop,
England, Cinch had revenue for 2009 of approximately $60 million.
Cinch manufactures a broad range of interconnect products for
customers in the military and aerospace, high-performance
computing, telecom/datacom, and transportation markets. Cinch's
products include CIN::APSE & iQ, Omega, Dura-Con, Cables,
Header & Harness Connectors, ModICE & ICE, and AMC
Connectors, as well as miniature ribbons, D-subminiature
connectors, Filtered D-subminiatures, barrier blocks and jones
plugs & sockets.
"Cinch stands out in the highly fragmented connector market
because of its innovative technologies, breadth of product
offerings, outstanding customer service, and exceptional product
performance," said Daniel Bernstein, President of Bel. "Cinch's
products and manufacturing assets are a natural addition to Bel's,
and we see attractive growth opportunities in the combination of
our extensive customer bases. We expect this acquisition to close
in early 2010, and to be accretive to Bel's earnings in 2010."
About Bel
Bel (www.belfuse.com) and its subsidiaries are primarily engaged
in the design, manufacture and sale of products used in networking,
telecommunications, high speed data transmission, and consumer
electronics. Products include magnetics (discrete components, power
transformers and MagJack®s), modules (DC-DC converters, integrated
analog front end modules and custom designs), circuit protection
(miniature, micro and surface mount fuses) and interconnect devices
(passive jacks, plugs and cable assemblies). Bel operates
facilities around the world.
Forward-Looking Statements
Except for historical information contained in this news
release, the matters discussed in this press release (including
statements regarding growth opportunities and the accretive nature
of the transaction) are forward-looking statements that involve
risks and uncertainties. Among the factors that could cause actual
results to differ materially from such statements are: the
satisfaction of closing conditions in the purchase agreement, the
risks associated with integrating two businesses, the market
concerns facing the combined company's customers, the continuing
viability of sectors that rely on the combined company's products,
the effect of business and economic conditions; capacity and supply
constraints or difficulties; product development, commercializing
or technological difficulties; the regulatory and trade
environment; risks associated with foreign currencies;
uncertainties associated with legal proceedings; the market's
acceptance of the combined company's new products and competitive
responses to those new products and the risk factors detailed from
time to time in the Company's SEC reports. In light of the risks
and uncertainties, there can be no assurance that any
forward-looking statement will in fact prove to be correct. We
undertake no obligation to update or revise any forward-looking
statements.
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