Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) announced today that
it has signed a definitive agreement to acquire the Transpower magnetics
business of TE Connectivity. Bel will pay approximately $22.4 million in
cash to acquire the business, which had trailing twelve month revenue of
approximately $75 million. The acquisition is expected to be immediately
accretive to Bel's earnings. The transaction is expected to be completed
in the first quarter of 2013.
"This acquisition, Bel's fourth in the past five months, advances our
strategy to position the Company for long term growth and profitability.
Included in our purchase of the Transpower business are the ICM
(integrated connector modules) family of products, including RJ45,
10/100 Gigabit, 10G, PoE/PoE+, MRJ21, RJ.5, a line of modules for
smart-grid applications and discrete magnetics. Bel will also receive a
license to produce ICM products using TE's planar embedded magnetics
technology," said Daniel Bernstein, Bel's President and CEO.
"We believe the acquisition of the Transpower business solidifies our
position as the world-wide leader for ICM's. The combination of the two
businesses will create an exceptional portfolio of products and enhance
Bel's leadership in the deployment of next generation ICM's," Bernstein
Bernstein added, "By selecting Bel as the acquiring company, TE
deonstrates 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, China manufacturing facility and key North American
associates who support the business unit."
Houlihan Lokey and Stephens Inc. acted as financial advisors to Bel in
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, 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, passive jacks, plugs and high-speed cable
assemblies). The Company operates facilities around the world.
Except for historical information contained in this press release,
the matters discussed in this press release (including the statements
regarding the impact of the acquisition on earnings and on the Company's
business and regarding growth opportunities) are forward looking
statements that involve risks and uncertainties. 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; 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; the Company's ability to
integrate newly acquired businesses; 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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