Bel Announces Closing Acquisition of EOS
March 31 2021 - 2:00PM
Bel Fuse Inc. (“Bel,” or, “the Company”)
(Nasdaq:BELFA and Nasdaq:BELFB), a leading supplier of products
that power, protect and connect electronic circuits, today
announced that it has closed on its previously announced
acquisition of EOS, of Mumbai, India, effective March 31, 2021.
Consideration of $7 million, was funded with cash on hand.
EOS had 2020 (annual) sales of approximately $12
million and operates a 56,000 square foot facility, with ~400
associates, located in Mumbai, India. We expect EOS to play a key
role in Bel’s penetration of certain industrial and medical markets
currently being served by EOS, with a strong line of high-power
density and low-profile products with high convection ratings. The
EOS business will report into Bel’s Power Solutions &
Protection group.
Dan Bernstein, Bel’s CEO commented, “We look
forward to adding EOS’ complementary products to our suite of
offerings that we can provide for our customers. In addition to the
new products and customers we will gain, we’re also excited to add
another facility that allows for the potential of additional supply
chain efficiencies for Bel. Also importantly, we expect this
transaction to be EBITDA accretive to our financial performance
beginning in the second quarter of 2021. EOS is another example of
our ability to move quickly on strategic acquisitions supported
with ample availability of both cash and credit lines.”
About BelBel (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.
Forward-Looking
StatementsExcept for historical information contained in
this press release, the matters discussed in this press release
(including the statements regarding the anticipated supply chain
efficiencies and the expectation that EOS will generate EBITDA
accretive to our financial performance beginning in the second
quarter) are forward-looking statements (as described under the
Private Securities Litigation Reform Act of 1995) 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 the Company’s customers; the continuing viability
of sectors that rely on the Company’s products; the effects of
business and economic conditions; difficulties associated with
integrating previously acquired companies; capacity and supply
constraints or difficulties; product development, commercialization
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; the Company’s ongoing evaluation of the
consequences of the U.S. Tax Cuts and Jobs Act; the impact of
changes to U.S. trade and tariff policies; and the risk factors
detailed from time to time in the Company's SEC reports. In light
of the risks and uncertainties impacting Bel’s business, 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:Peter Seltzberg, Managing
DirectorDarrow Associatestel
516.419.9915pseltzberg@darrowir.com |
Company Contact:Daniel
BernsteinPresidentir@belf.com |
|
|
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From May 2024 to Jun 2024
Bel Fuse (NASDAQ:BELFA)
Historical Stock Chart
From Jun 2023 to Jun 2024