Bel Agrees to Acquire Emerson Network Power Connectivity Solutions from Emerson for $98 Million
May 16 2014 - 6:30PM
Business Wire
Three Major Acquisitions in Past 14 Months
Expected to More Than Double Bel's Revenue
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) announced
today that it has entered into a definitive agreement to acquire
the Emerson Network Power Connectivity Solutions (ECS) business of
Emerson Inc. (NYSE:EMR). Bel will pay approximately $98
million in cash to acquire the ECS business, which had 2013 revenue
of approximately $83 million. The acquisition, which is subject to
regulatory clearance and other customary closing conditions, is
expected to close in the second quarter of 2014 and to be
immediately accretive to Bel's earnings.
Dan Bernstein, Bel's president, said, "This is Bel's third major
acquisition in the past 14 months; all together, these acquisitions
will increase our revenue from $283 million, pre-acquisition, to
approximately $705 million annually. We are proud that Emerson
Inc., ABB Ltd. and TE Connectivity Ltd., have determined in the
best interest of their shareholders, customers and employees to
entrust these businesses to Bel and we look forward to growing
these organizations."
ECS is headquartered in Bannockburn, Illinois, and has
manufacturing facilities in North America, the U.K. and China, with
a total of 525 employees world-wide. ECS is a leading provider of
High-performance RF/Microwave and Harsh Environment Optical
Connectors and Assemblies for military, aerospace, wireless
communications, data communications, broadcast and industrial
applications. ECS has a global sales footprint and a diverse
customer base that includes some of the world's largest
manufacturers coupled with an extensive distribution network
populated with today's premier electronic distributors. The ECS
division is comprised of the following brands Stratos optical
technologies, Johnson, Trompeter, Midwest Microwave, Semflex,
Vitelec Electronics, AIM Electronics and Cambridge Products.
Bernstein added, "The acquisition of ECS is a major step forward
in our strategy to expand into the aerospace and military markets
where long term product reliability resulting from highly
engineered solutions is a key. The addition of the ECS Stratos
brand with our Fibreco/Gigacom Interconnect products will give us
an industry leading position in the Expanded Beam Fiber Optic
market place. The ECS group also significantly expands our
copper-based product offering with the addition of RF/Microwave
connectors and assemblies. Bel is eagerly anticipating the many
growth opportunities that will be created through this transaction,
and we look forward to continuing to build an industry leading high
reliability interconnect business with our new colleagues at
ECS."
Bel has obtained a commitment for financing provided by KeyBank
National Association that, combined with available liquidity, is
sufficient to fund the acquisition. Needham & Company, LLC is
serving as exclusive financial advisor, KeyBanc Capital Markets
Inc. is serving as debt advisor, and DeCotiis, FitzPatrick &
Cole, LLP is acting as Bel's legal counsel in the transaction.
About Bel
Bel (www.belfuse.com) and its divisions are primarily engaged in
the design, manufacture, and sale of products used in networking,
telecommunications, high-speed data transmission, commercial
aerospace, military, transportation, and consumer electronics.
Products include magnetics (discrete components, power transformers
and MagJack® connectors with integrated magnetics), modules (DC-DC
converters and AC-DC power supplies, integrated analog front end
modules and custom designs), circuit protection (miniature, micro
and surface mount fuses) and interconnect devices (micro, circular
and filtered D Sub connectors, fiber optic connectors, passive
jacks, plugs and high speed cable assemblies). The Company operates
facilities around the world.
Forward Looking Statements
Except for historical information contained in this press
release, the matters discussed in this press release (including the
statements regarding the impact of the Emerson Connectivity
Solutions acquisition on Bel's growth and profitability and on
Bel's competitive position; the expected accretive nature of that
acquisition; and the impact of that acquisition on future sales of
interconnect products and related products) are forward looking
statements that involve risks and uncertainties. Actual results
could differ materially from Bel's projections. Among the factors
that could cause actual results to differ materially from such
statements are: the market concerns facing our customers; the
continuing viability of sectors that rely on our products; the
effects of business and economic conditions; difficulties
associated with integrating recently acquired companies, including
Emerson Connectivity Solutions, 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 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.
Investor Contact:Neil Berkman
Associates310-477-3118info@berkmanassociates.comorCompany
Contact:Bel Fuse Inc.Daniel BernsteinPresident &
CEO201-432-0463
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