Jersey City, N.J. -- In a move expected to bolster its share in the aerospace and military market, Bel Fuse Inc. announced it will acquire the Emerson Network Power Connectivity Solutions (ECS) business of Emerson Inc. The company recently announced the acquisition of the Power-One Power Solutions business of ABB Ltd., which adds to its technical expertise in the power conversion market.
Bel will pay approximately $98 million in cash to acquire the ECS business, which had revenue of approximately $83 million in 2013.
"The acquisition of ECS is a major step forward in our strategy to expand into the aerospace and military markets where long term product reliability resulting from highly engineered solutions is a key,” said Dan Bernstein, Bel’s president, in a statement.
“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. The ECS group also significantly expands our copper-based product offering with the addition of RF/microwave connectors and assemblies,” Bernstein added. “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."
ECS, headquartered in Bannockburn, Illinois, has manufacturing facilities in North America, the U.K. and China, with 525 employees worldwide. ECS manufactures high-performance RF/microwave and harsh environment optical connectors and assemblies for military, aerospace, wireless communications, data communications, broadcast and industrial applications. ECS brands include Stratos optical technologies, Johnson, Trompeter, Midwest Microwave, Semflex, Vitelec Electronics, AIM Electronics and Cambridge Products.
Acquisitions have played a major role in Bel’s growth over the past year, helping the components manufacturer to grow nearly 22 percent in 2013. Last year, Bel acquired privately-held, Array Connector Corp., a manufacturer of aerospace and mil-spec connector products, which also added to its military/aerospace portfolio, and TE Connectivity’s Transpower magnetics business (now called TRP Connector).
The purchase of ECS, Bel’s seventh acquisition since 2012, also will contribute to the company’s bottom line this year. Bel expects the three major acquisitions – ECS, Power Solutions, and Transpower -- in the past 14 months to more than double its revenue in 2014.
"This is Bel's third major acquisition in the past 14 months; all together, these acquisitions will increase our revenue from $283 million, pre-acquisition, to approximately $705 million annually,” stated Bernstein. “We are proud that Emerson Inc., ABB Ltd. and TE Connectivity Ltd., have determined in the best interest of their shareholders, customers and employees to entrust these businesses to Bel and we look forward to growing these organizations."