Bel Closes Acquisition of ABB Power-One Solutions
June 20 2014 - 8:00AM
Business Wire
Bel Fuse Inc. (NASDAQ:BELFA and NASDAQ:BELFB)
announced today that it has closed the previously announced
acquisition of the Power-One Solutions business from ABB. Bel
acquired the Power Solutions business for approximately $117
million on a cash and debt-free basis. The business had 2013
revenue of approximately $251 million and employs approximately
2,000 people with manufacturing facilities in Shenzhen, China and
Dubnica nad Vahom, Slovakia. The acquisition is expected to be
accretive to Bel's earnings beginning in the second half of
2014.
Power Solutions is a leading provider of high-efficiency and
high-density power conversion products for server, storage and
networking equipment, industrial applications and power systems.
Power Solutions offers a premier line of standard,
modified-standard and custom designed AC/DC, DC/DC and other
specific power conversion products for a variety of technologies in
data centers, telecommunications and industrial applications. Power
Solutions has a global sales footprint and a diverse customer base
that includes some of the largest corporations and distributors in
the world.
Daniel Bernstein, Bel's President and CEO, said, "The
acquisition of Power Solutions is a major step forward in the
development of Bel's power business and the implementation of our
strategy to enhance growth and profitability for our shareholders.
Since 2009, we have believed that the combination of our two
respective power businesses would create a dynamic enterprise
capable of competing effectively on a global basis. Bel is excited
by the many growth opportunities that will be created by this
transaction, and we look forward to building an industry-leading
power business with our new colleagues at Power Solutions."
Stephens Inc. acted as financial advisor to Bel in this
transaction, and KeyBank N.A provided financing.
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 Power-One Power Solutions
acquisition on Bel's short-term and long-term growth and
profitability, on Bel's cost structure and on Bel's competitive
position; the expected accretive nature of that acquisition; and
the impact of that acquisition on future sales of ICM 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 the entities referred to in this
press release; 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 Bernstein,
201-432-0463Presidentir@belf.com
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