Bel Closes Acquisition of Emerson Network Power Connectivity Solutions
July 25 2014 - 10:11AM
Business Wire
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) announced
today that it has closed the previously announced acquisition of
the Emerson Network Power Connectivity Solutions (CS) business from
Emerson (NYSE:EMR). Bel acquired the Connectivity Solutions
business for approximately $98 million on a cash and debt-free
basis. The business had 2013 revenue of approximately $83 million
and employs approximately 525 people. CS is headquartered in
Bannockburn, Illinois, and has manufacturing facilities in North
America, the U.K. and China (the China portion of the transaction
is expected to close by the end of the third quarter of 2014). The
acquisition is expected to be accretive to Bel's earnings beginning
in the second half of 2014.
CS 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. CS 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 CS
division is comprised of the following brands: Stratos Optical
Technologies, Johnson, Trompeter, Midwest Microwave, Semflex,
Vitelec Electronics, AIM Electronics and Cambridge Products.
Dan Bernstein, Bel's president, said, "This is Bel's third major
acquisition in the past 16 months; all together, these acquisitions
will increase our revenue from $283 million, pre-acquisition, to
approximately $705 million annually. We are proud that Emerson, ABB
Ltd. and TE Connectivity Ltd., have determined that it is in the
best interest of their shareholders, customers and employees to
entrust these businesses to Bel and we look forward to growing
these organizations."
Bernstein added, "The acquisition of CS is a major step forward
in Bel and its Cinch Connectors' business strategy to further
expand into the aerospace and military markets where long term
product reliability resulting from highly engineered solutions is a
key. The addition of the CS Stratos brand with our Fibreco/Gigacom
Interconnect products gives us a solid position in the Expanded
Beam Fiber Optic market place. The CS 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 CS."
Financing for this acquisition was provided by KeyBank N.A.
Needham & Company, LLC served as exclusive financial advisor
and DeCotiis, FitzPatrick & Cole, LLP acted as Bel's legal
counsel in the transaction.
About Bel
Bel (www.belfuse.com) has three divisions that are primarily
engaged in the design, manufacture, and sale of products used in
aerospace, data transmission, military, transportation, and
consumer electronics. These three divisions include Magnetic
Solutions (discrete components, power transformers and MagJack®
connectors with integrated magnetics), Power Solutions and
Protection (AC-DC power supplies, DC-DC converters, custom designs,
miniature, micro, surface mount and resettable fuses) and
Connectivity Solutions. (micro, circular, filtered D Sub, fiber
optic, RF connectors, microwave components, passive jacks, plugs
and 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.
Bel Fuse Inc.Daniel
BernsteinPresident201.432.0463ir@belf.comwww.belfuse.comorInvestor
Contact:Neil Berkman Associates(310)
477-3118info@berkmanassociates.com
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