BEL Announces Sale of Power Solutions Division to Unipower for $10 Million
January 26 2015 - 12:00PM
Business Wire
BEL FUSE INC., "Bel" (NASDAQ:BELFB) &
(NASDAQ:BELFA) announced today that it has completed the sale
of the Network Power Systems division ("NPS") of its recently
acquired Power Solutions business to privately owned Unipower
LLC, Coral Springs, Florida, for $9 million in cash plus $1
million in escrow pending realization of certain sales targets.
Proceeds of the sale will be used primarily to reduce debt.
NPS, which specializes in high quality, advanced technology DC
power systems for use in networking, telecommunications, and
high-speed data transmission, was acquired by Bel as part of its
approximately $117 million purchase of Power Solutions from ABB in
June 2014.
"This divestiture will allow us to focus exclusively on Power
Solutions' core product groups--Front End, Industrial and Board
Mounted Power--as we work to develop Bel's global power business, a
key element of our strategy to enhance growth and profitability for
our shareholders," said Daniel Bernstein, Bel's President and
CEO.
The transaction provides that Bel will move processes and people
to Unipower under an interim transition agreement. Bel also will
continue to manufacture the NPS products for up to 24 months under
a manufacturing agreement.
About Bel
Bel (www.belfuse.com) is primarily engaged in the design,
manufacture, and sale of products used in aerospace, data
transmission, military, transportation, and consumer electronics.
Bel's product groups 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 preliminary and unaudited net sales for the
fourth quarter and full year 2014) are forward looking statements
that involve risks and uncertainties, including risk factors
detailed from time to time in the Company's SEC reports. Management
makes no assurance that any forward looking statement will in fact
prove to be correct and undertakes no obligation to update or
revise any such forward looking statements.
Investor Contact:Neil Berkman
Associates310-477-3118info@berkmanassociates.comorCompany
Contact:Bel Fuse Inc.Daniel Bernstein,
President201-432-0463ir@BelFuse.com
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