TUALATIN, Ore. and
JERSEY CITY, N.J.,
Nov. 11, 2019 /PRNewswire/
-- CUI Global, Inc. (Nasdaq: CUI) ("CUI Global") and Bel Fuse
Inc. (Nasdaq: BELFA and Nasdaq: BELFB) ("Bel") today announced that
the two companies have entered into an asset purchase agreement
(the "Agreement") under which CUI Global will sell the majority of
its Power business (the "CUI Power Business") to Bel for
$32.0 million, plus the assumption of
certain liabilities and subject to closing working capital
adjustments. The CUI Power Business is a division within CUI
Global's Power and Electromechanical ("P&EM")
segment.
Excluded from the Agreement is CUI Global's approximate
20% equity interest in Virtual Power Systems (VPS) related to the
Intelligent Control of Energy® (ICE) product line for data centers
based on VPS' proprietary Software Defined Power® (SDP)
infrastructure.
Jim O'Neil, CEO of CUI
Global, stated, "This transaction unlocks the substantial value in
our P&EM segment and is an important step in our transformation
into a diversified energy services platform that is grounded in our
existing product portfolio and gas infrastructure capabilities.
With this divestiture behind us, we move forward with an aggressive
and disciplined acquisition strategy to tap into secular demand
trends in the electric power, oil and gas, and telecommunication
infrastructure industries for long-term shareholder value
creation."
Daniel Bernstein, CEO of
Bel, said, "The CUI Power Business' extensive product
portfolio and distribution channel fits squarely within our growth
strategy. Their product portfolio will round out Bel's current
Power Products offering, allowing us to better address all our
customer power needs. In addition, we look forward to
utilizing CUI's success with the electronic catalog
distributors throughout the BelCinch product groups and
capitalizing on CUI's enviable strong relationship with these
distributors. Electronic Catalog Distributors are playing a vital
role in demand creation, and over the past 4 years this segment has
been our fastest growing business. The combination of Bel and the
CUI Power Business will substantially strengthen our Power Group
and unite complementary capabilities, sales channels and customer
relationships.
B. Riley FBR, Inc. acted as exclusive financial advisor to
CUI Global in this transaction.
About CUI Global, Inc.
Delivering Innovative Technologies for an
Interconnected World . . . . .
CUI Global, Inc. is a publicly traded company dedicated to
maximizing shareholder value through the acquisition and
development of innovative companies to create a diversified energy
services platform. CUI Global's Energy business, Orbital Gas
Systems is a leader in innovative gas solutions with more than 30
years of experience in design, installation and the commissioning
of industrial gas sampling, measurement and delivery systems
providing solutions to the energy, power and processing
markets. Orbital Gas Systems manufactures and delivers a
broad range of technologies including environmental monitoring, gas
metering, process control, telemetry, gas sampling and BioMethane.
As a publicly traded company, shareholders can participate in the
opportunities, revenues, and profits generated by the products,
technologies, and market channels of CUI Global and its
subsidiaries. But most important, a commitment to conduct business
with a high level of integrity, respect, and philanthropic
dedication allows the organization to make a difference in the
lives of their customers, employees, investors and global
community.
For more information please
visit: http://www.cuiglobal.com
About Bel
Bel (www.belfuse.com) designs, manufactures and markets a
broad array of products that power, protect and connect electronic
circuits. These products are primarily used in the networking,
telecommunications, computing, military, aerospace, transportation
and broadcasting industries. Bel's product groups include Magnetic
Solutions (integrated connector modules, power transformers, power
inductors and discrete components), Power Solutions and
Protection (front-end, board-mount and industrial power products,
module products and circuit protection), and Connectivity Solutions
(expanded beam fiber optic, copper-based, RF and RJ connectors and
cable assemblies). The Company operates facilities around the
world.
Important Cautions Regarding Forward Looking
Statements
This document contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such statements are subject to risks and uncertainties
that could cause actual results to vary materially from those
projected in the forward-looking statements. The Company may
experience significant fluctuations in future operating results due
to a number of economic, competitive, and other factors, including,
among other things, our reliance on third-party manufacturers and
suppliers, government agency budgetary and political constraints,
new or increased competition, changes in market demand, and the
performance or reliability of our products. These factors and
others could cause operating results to vary significantly from
those in prior periods, and those projected in forward-looking
statements. Additional information with respect to these and other
factors, which could materially affect the Company and its
operations, are included in certain forms the Company has filed
with the Securities and Exchange Commission.
CUI Global External Investor Relations
Counsel:
LHA Investor Relations
Sanjay M. Hurry
T: 212-838-3777
cuiglobal@lhai.com
Bel Investor Relations Contact:
Darrow Associates
Peter Seltzberg, Managing
Director
T: 516-419-9915
pseltzberg@darrowir.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/cui-global-agrees-to-sell-power-business-to-bel-fuse-300955186.html
SOURCE CUI Global, Inc.