Bel Closes Acquisition of TE Connectivity's Transpower Magnetics Business
JERSEY CITY, N.J. -- April 01, 2013
Bel Fuse Inc. (NASDAQ:BELFA)(NASDAQ:BELFB) announced today that it has closed
the previously announced acquisition of the Transpower magnetics business from
TE Connectivity. Bel paid approximately $22.4 million in cash to acquire the
business, which had trailing twelve month revenue of approximately $75 million
and employs approximately 2,500 people at its 237,000 square foot
manufacturing facility in Changping, China. The acquisition is expected to be
accretive to Bel's earnings beginning in the second quarter of 2013.
Among the integrated connector module (ICM) products included in the
Transpower acquisition are RJ45 connectors for 10/100, 1G, 10G and PoE/PoE+
capable, MRJ21 connectors, RJ.5 connectors and a line of modules for
smart-grid applications and discrete magnetics. Bel also received a license to
produce ICM products using TE's planar embedded magnetics technology.
Daniel Bernstein, Bel's President and CEO, said, "By solidifying Bel's
position as a world leader in ICMs, this acquisition is a major step forward
in our strategy to increase Bel's growth and profitability in both the short
and long term.
"Trading under the name TRP International, we expect Bel's new division to
double our sales of ICMs and related components. We also will benefit from
various manufacturing, purchasing and engineering synergies that will enable
us to further improve Bel's cost structure and enhance our competitive
position in this market. By selecting Bel as the acquiring company, TE showed
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 manufacturing facility
and key associates who support the business unit."
Houlihan Lokey Investment Bank and Stephens Inc. acted as financial advisors
to Bel in this transaction.
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
Except for historical information contained in this press release, the matters
discussed in this press release (including the statements regarding the impact
of the Transpower acquisition on Bel's short-term and long-term growth and
profitability, on Bel's cost structure and on Bel's competitive position; the
expected accretive nature of that acquisition; and the impact of that
acquisition on future sales of ICM 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 the entities referred to in this press release; 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.
Neil Berkman Associates
Bel Fuse Inc.
President & CEO
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