Bel Completes Acquisition of Cinch Connectors for $39 Million
January 29 2010 - 12:20PM
Business Wire
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) announced
today that it closed the previously announced acquisition of Cinch
Connectors from Safran S.A. (ENXTPA:SAF), a leading French
industrial group, for approximately $37.5 million in cash plus
approximately $1.5 million for the assumption of certain expenses.
The final purchase price remains subject to certain adjustments
related to working capital. The transaction, which was funded with
cash on hand, is expected to be accretive to Bel's earnings in
2010.
"The addition of Cinch's well-established lines of connector and
cable products and extensive customer base provides Bel with
immediate access to large and growing aerospace and military
markets and strengthens Bel's position as a one-stop supplier of
high-performance computing, telecom and data products," said Dan
Bernstein, President of Bel.
Founded in 1920 and headquartered in Lombard, Illinois and with
manufacturing facilities in Vinita, Oklahoma, Reynosa, Mexico and
Worksop, England, Cinch had revenue for 2009 of approximately $56
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.
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 MagJack7s), 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 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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