Bel Completes Acquisition of Galaxy Power
March 22, 2005
JERSEY CITY, NEW JERSEY, March 22, 2004 . . . Bel Fuse Inc. (NASDAQ:BELFA & NASDAQ:BELFB) announced today that it closed the previously announced acquisition of Galaxy Power Inc., (www.galaxypwr.com) a privately-held Westborough, MA-based designer and manufacturer of high-density dc-dc converters for distributed power and telecommunications applications.
"This acquisition will complement our strong product line of non-isolated converters with Galaxy's line of high-density isolated converters, creating a combined product portfolio which will help make Bel a formidable competitor in the dc-dc power converter market," said Daniel Bernstein, president of Bel Fuse.
On March 4, 2005, Bel announced a definitive agreement to acquire Galaxy Power for approximately $18 million in cash and the assumption of approximately $2 million in liabilities. Unaudited net sales for Galaxy Power during the year ended December 31, 2004 were approximately $18.6 million and its unaudited net income for 2004 was approximately $0.8 million. This acquisition has now closed and is expected to be immediately accretive to Bel shareholders.
Stephens Inc. (www.stephens.com), an investment banking firm based in Little Rock, AR, acted as financial advisor to Bel on this transaction.
Bel (www.BelFuse.com) and its subsidiaries are primarily engaged in the design, manufacture and sale of products used in networking, telecommunications, high speed data transmission, automotive and consumer electronics. Products include magnetics (discrete components, power transformers and MagJack®s) modules (dc-dc converters, integrated analog front end modules, custom designs), circuit protection (miniature, micro and surface mount fuses) and interconnect devices (passive jacks, plugs and cable assemblies). The Company operates facilities around the world.
Except for historical information contained in this news release, the matters discussed, 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 effect of business and economic conditions; capacity and supply constraints or difficulties; product development, commercializing or technological difficulties; the regulatory and trade environment; the market's acceptance of the Company's new products and competitive responses to new products, and the risk factors detailed from time to time in the Company's SEC reports.
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Neil Berkman Associates
(858)273-0618; ext. 103