Cinch Connectivity Solutions
Bel Closes Acquisition of Emerson Network Power Connectivity Solutions
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Bel Closes Acquisition of Emerson Network Power Connectivity SolutionsCinch Connectivity Solutions
Bel Fuse announced today that it has closed the previously announced acquisition of the Emerson Network Power Connectivity Solutions business from Emerson. Bel acquired the Connectivity Solutions business for approximately $98m on a cash and debt-free basis. The business had 2013 revenue of approximately $83m and employs approximately 525 people. CS is headquartered in Bannockburn, Illinois, and has manufacturing facilities in North America, the UK and China (the China portion of the transaction is expected to close by the end of the third quarter of 2014). The acquisition is expected to be accretive to Bel's earnings beginning in the second half of 2014.
CS 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. CS 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 CS division is comprised of the following brands: Stratos Optical Technologies, Johnson, Trompeter, Midwest Microwave, Semflex, Vitelec Electronics, AIM Electronics and Cambridge Products.
Bel president Dan Bernstein said: "This is Bel's third major acquisition in the past 16 months; all together, these acquisitions will increase our revenue from $283m, pre-acquisition, to approximately $705m annually. We are proud that Emerson, ABB and TE Connectivity have determined that it is in the best interest of their shareholders, customers and employees to entrust these businesses to Bel and we look forward to growing these organisations."
Bernstein added: "The acquisition of CS is a major step forward in Bel and its Cinch Connectors' business strategy to further expand into the aerospace and military markets where long term product reliability resulting from highly engineered solutions is a key. The addition of the CS Stratos brand with our Fibreco/Gigacom Interconnect products gives us a solid position in the expanded beam fibre-optic market place. The CS 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 CS."
Financing for this acquisition was provided by KeyBank NA Needham & Company served as exclusive financial advisor and DeCotiis, FitzPatrick & Cole, LLP acted as Bel's legal counsel in the transaction.