Bel Fuse Inc. will acquire a Tualatin, Ore.-based division of CUI Global Inc., representing the majority of that company’s Power business.
On Monday, Jersey City-based Bel said it will pay $32 million, plus the assumption of certain liabilities, for CUI Power Business.
The all-cash deal is expected to close in the fourth quarter of 2019, funded by available cash on hand, Bel said. Some or all of that funding may be sourced from the company’s revolving credit facility.
According to Bel, CUI Power has sales of about $37 million and offers products and distribution with strong growth potential.
In a statement, Bel Chief Executive Officer Daniel Bernstein said the purchase correlated with the company’s growth strategy, and that it would serve to bring together the entities’ corresponding capacities, customer relationships and sales channels.
“Their product portfolio will round out Bel’s current Power Products offering, allowing us to better address all our customer power needs,” he said. “[W]e look forward to utilizing CUI’s success with the electronic catalog distributors throughout the Bel/Cinch product groups and capitalizing on CUI’s enviable strong relationship with these distributors.”
The purchase includes the assumption of certain liabilities and is subject to closing working capital adjustments.
Bel designs, manufactures and markets products that power, protect and connect electronic circuits, primarily for use in industries including networking, telecommunications, computing, transportation and broadcasting.