Bel Closes Acquisition of TE Connectivity's Transpower Magnetics Business
April 01 2013 - 8:30AM
Business Wire
Bel Fuse Inc. (NASDAQ:BELFA)(NASDAQ:BELFB) announced
today that it has closed the previously announced acquisition of
the Transpower magnetics business from TE Connectivity. Bel paid
approximately $22.4 million in cash to acquire the business, which
had trailing twelve month revenue of approximately $75 million and
employs approximately 2,500 people at its 237,000 square foot
manufacturing facility in Changping, China. The acquisition is
expected to be accretive to Bel's earnings beginning in the second
quarter of 2013.
Among the integrated connector module (ICM) products included in
the Transpower acquisition are RJ45 connectors for 10/100, 1G, 10G
and PoE/PoE+ capable, MRJ21 connectors, RJ.5 connectors and a line
of modules for smart-grid applications and discrete magnetics. Bel
also received a license to produce ICM products using TE's planar
embedded magnetics technology.
Daniel Bernstein, Bel's President and CEO, said, "By solidifying
Bel's position as a world leader in ICMs, this acquisition is a
major step forward in our strategy to increase Bel's growth and
profitability in both the short and long term.
"Trading under the name TRP International, we expect Bel's new
division to double our sales of ICMs and related components. We
also will benefit from various manufacturing, purchasing and
engineering synergies that will enable us to further improve Bel's
cost structure and enhance our competitive position in this market.
By selecting Bel as the acquiring company, TE showed its confidence
that Bel will provide the same high level of service to customers
that continue to purchase from both our companies. Demonstrating
our commitment to this goal, Bel will retain the Changping
manufacturing facility and key associates who support the business
unit."
Houlihan Lokey Investment Bank and Stephens Inc. acted as
financial advisors to Bel in this transaction.
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 Transpower 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.
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