Bel (NASDAQ: BELFA; BELFB) announced that it has completed the sale of the Network Power Systems division (NPS) of its recently acquired Power Solutions business to privately owned Unipower LLC, Coral Springs, Florida, for $9 million in cash plus $1 million in escrow pending realization of certain sales targets.
Proceeds of the sale will be used primarily to reduce debt, said Bel in press release.
"This divestiture will allow us to focus exclusively on Power Solutions' core product groups--front end, industrial and board mounted power--as we work to develop Bel's global power business, a key element of our strategy to enhance growth and profitability for our shareholders," said Daniel Bernstein, Bel's president and CEO.
The transaction provides that Bel will move processes and people to Unipower under an interim transition agreement. Bel also will continue to manufacture the NPS products for up to 24 months under a manufacturing agreement.
NPS, which specializes in high quality, advanced technology DC power systems for use in networking, telecommunications, and high-speed data transmission, was acquired by Bel as part of its approximately $117 million purchase of Power Solutions from ABB in June 2014.
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