Bel Closes Its Previously Announced Acquisition of Enercon Technologies
November 14 2024 - 7:30AM
Bel Fuse Inc. (“Bel,” or, “the Company”)
(Nasdaq:BELFA and Nasdaq:BELFB), announced today that it has closed
the previously announced majority stake acquisition of Enercon
Technologies, Ltd. (“Enercon”) from Fortissimo Capital based on an
enterprise value of $400 million. Bel has acquired an 80% stake
upfront for $320 million (subject to customary adjustments), plus
up to $10 million of potential earnout payments for the 2025-2026
period, with the intent to purchase the remaining 20% by early 2027
based on future EBITDA performance. The transaction was funded
through utilization of cash on hand of approximately $80 million,
with approximately $240 million provided through incremental
borrowings under the Company’s revolving credit facility.
Enercon is a leading supplier of highly
engineered power conversion and networking solutions to military
and aerospace markets globally. Enercon is headquartered in
Netanya, Israel with manufacturing sites also located in North
America and India. The company typically operates as the sole
supplier of its products, providing robust and reliable solutions
across air, land and sea applications. The full business has LTM Q3
2024 sales of $115 million with gross profit margin of 47%.
This acquisition allows Bel to extend its
product portfolio supporting the aerospace and defense markets to
include power solutions, with clear potential cross selling
opportunities in the future. Bel’s manufacturing footprint expands
further into India and the U.S. with new manufacturing capabilities
and a talented group of engineers based in Israel. Enercon will
operate independently under the Bel Power and Solutions
segment.
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, general industrial,
high-speed data transmission, military, commercial aerospace,
transportation and eMobility industries. Bel's portfolio of
products also finds application in the automotive, medical,
broadcasting and consumer electronics markets. 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.
Company Contact:
Lynn HutkinVice President of Financial Reporting & Investor
Relationsir@belf.com
Investor Contact:
Three Part AdvisorsJean Marie Young, Managing Director or Steven
Hooser, Partner631-418-4339jyoung@threepa.com;
shooser@threepa.com
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