Bel Announces Agreement to Purchase CUI Power Assets
November 11 2019 - 7:30AM
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 the Company has entered into an asset purchase
agreement (the “Agreement”) with CUI Global Inc. (Nasdaq:CUI), in
which CUI 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.
Based in Tualatin, Oregon, the CUI Power
Business, a division of CUI Global Inc., had TTM sales of
approximately $37 million with products and distribution that offer
strong opportunities for growth.
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 four 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.”
The all-cash transaction is expected to close in
the fourth quarter of 2019, and will be funded with available cash
on hand, some or all of which may be sourced from our revolving
credit facility.
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 impact of the
CUI Power Business acquisition on Bel's growth and on Bel's
competitive position; the expected effects of the acquisition on
distribution channels, sales channels, addressing customer needs,
and strengthening relationships with distributors and customers;
and the anticipated impact of the acquisition on demand creation
and future sales of products) 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: |
Company Contact: |
Peter Seltzberg, Managing
Director |
Daniel Bernstein |
Darrow Associates |
President |
tel 516.419.9915 |
ir@belf.com |
pseltzberg@darrowir.com |
|
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