Three Major Acquisitions in Past 14 Months Expected to More Than
Double Bel's Revenue
JERSEY CITY, N.J.--(BUSINESS WIRE)--
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB) announced today that
it has entered into a definitive agreement to acquire the Emerson
Network Power Connectivity Solutions (ECS) business of Emerson Inc.
(NYSE:EMR). Bel will pay approximately $98 million in cash to
acquire the ECS business, which had 2013 revenue of approximately $83
million. The acquisition, which is subject to regulatory clearance and
other customary closing conditions, is expected to close in the second
quarter of 2014 and to be immediately accretive to Bel's earnings.
Dan Bernstein, Bel's president, said, "This is Bel's third major
acquisition in the past 14 months; all together, these acquisitions will
increase our revenue from $283 million, pre-acquisition, to
approximately $705 million annually. We are proud that Emerson Inc., ABB
Ltd. and TE Connectivity Ltd., have determined in the best interest of
their shareholders, customers and employees to entrust these businesses
to Bel and we look forward to growing these organizations."
ECS is headquartered in Bannockburn, Illinois, and has manufacturing
facilities in North America, the U.K. and China, with a total of 525
employees world-wide. ECS is a leading provider of High-performance
RF/Microwave and Harsh Environment Optical Connectors and Assemblies for
military, aerospace, wireless communications, data communications,
broadcast and industrial applications. ECS has a global sales footprint
and a diverse customer base that includes some of the world's largest
manufacturers coupled with an extensive distribution network populated
with today's premier electronic distributors. The ECS division is
comprised of the following brands Stratos optical technologies, Johnson,
Trompeter, Midwest Microwave, Semflex, Vitelec Electronics, AIM
Electronics and Cambridge Products.
Bernstein added, "The acquisition of ECS is a major step forward in our
strategy to expand into the aerospace and military markets where long
term product reliability resulting from highly engineered solutions is a
key. The addition of the ECS Stratos brand with our Fibreco/Gigacom
Interconnect products will give us an industry leading position in the
Expanded Beam Fiber Optic market place. The ECS group also significantly
expands our copper-based product offering with the addition of
RF/Microwave connectors and assemblies. Bel is eagerly anticipating the
many growth opportunities that will be created through this transaction,
and we look forward to continuing to build an industry leading high
reliability interconnect business with our new colleagues at ECS."
Bel has obtained a commitment for financing provided by KeyBank National
Association that, combined with available liquidity, is sufficient to
fund the acquisition. Needham & Company, LLC is serving as exclusive
financial advisor, KeyBanc Capital Markets Inc. is serving as debt
advisor, and DeCotiis, FitzPatrick & Cole, LLP is acting as Bel's legal
counsel in the 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 Emerson Connectivity Solutions acquisition
on Bel's growth and profitability and on Bel's competitive position; the
expected accretive nature of that acquisition; and the impact of that
acquisition on future sales of interconnect 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
Emerson Connectivity Solutions, 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.
Investor Contact:
Neil Berkman Associates
310-477-3118
info@berkmanassociates.com
or
Company
Contact:
Bel Fuse Inc.
Daniel Bernstein
President &
CEO
201-432-0463
Source: Bel Fuse Inc.
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