Business
Bel Closes on Acquisition of CUI Inc. Power Assets
JERSEY CITY, N.J., Dec. 03, 2019 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (“Bel,” or, “the Company”) (Nasdaq:BELFA and Nasdaq:BELFB), a leading supplier of products
About this update from Bel Fuse Inc.
[{"type":"text","content":"JERSEY CITY, N.J., Dec. 03, 2019 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (“Bel,” or, “the Company”) (Nasdaq:BELFA and Nasdaq:BELFB), a leading supplier of products that power, protect and connect electronic circuits, today announced that the Company has closed on its previously-announced asset purchase agreement (the “Agreement”) with CUI Global Inc. (Nasdaq:CUI) related to the purchase of the majority of the power business of CUI Inc.\n The acquired business had trailing twelve-month sales of approximately $37 million and is expected to be accretive to Bel’s consolidated net earnings by the second quarter of 2020. Gross margins (unaudited) are higher than Bel’s historical range, and the combination is expected to yield annual cost synergies of approximately $500,000. Bel will continue to operate the business from CUI Inc.’s leased ISO 9001:2015-certified facility in Tualatin, Oregon. Transaction BenefitsThe well-known CUI Inc. power brand will join Bel Power Solutions as leading power supply and conditioning brands in the Bel Power portfolio. We believe that the combination of Bel and the CUI Inc. power business will: Increase Bel’s presence in the distribution channel, making us the top supplier for power products at one of the major electronic catalog distributorsUnite complementary capabilities, sales channels and customer relationshipsBroaden our Power Product Portfolio giving us a full range of products to support all our customer power needsEnhance our gross margin profile and make a positive contribution to our net earningsProvide alternative business models and strategies to analyze and potentially implement on a broader scaleProduce cost synergies, $500,000 of which have been identified to date The Company paid $32 million in cash for the CUI Inc. power business acquired under the terms of the Agreement. About BelBel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel's product groups include Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components), Power Solutions and Protection (front-end, board-mount and industrial power products, module pro...