May 23, 2014 – Bel Fuse says it has entered into a definitive agreement to acquire the Emerson Network Power Connectivity Solutions (ECS) business of Emerson, where it will pay about $98 million. The acquisition, subject to regulatory clearance and other customary closing conditions, is expected to close in the second quarter of 2014.
Based in Bannockburn, Ill., the business offers fiber optic, radio-frequency and microwave-coaxial technologies that promise to safeguard network reliability, with brands including AIM-Cambridge, Johnson, Midwest Microwave, Semflex, Stratos, Trompeter, Viewsonics and Vitelec.
“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,” said Dan Bernstein, Bel president. “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.”
He noted that this will be Bel’s third major acquisition in the past 14 months; all together, these acquisitions are predicted to increase revenue from $283 million, pre-acquisition, to about $705 million annually.
“Although the business no longer aligns with our long term strategy to strengthen our core global franchises, it offers Bel attractive growth opportunities and is consistent with its strategic direction,” said Jamie Froedge, Emerson vice president, Acquisitions and Development. “We will work closely to ensure a smooth transition for customers and employees.”