Emerson agrees to sell Connectivity Solutions business to Bel Fuse for $98M
Net cash proceeds will be deployed for higher 2014 share repurchase, reports Emerson.
Emerson (NYSE: EMR) announced that it has agreed to divest its Connectivity Solutions business unit to Bel Fuse (NASDAQ: BELFA and BELFB). The transaction, valued at $98 million, is expected to close before the end of the fiscal year, with proceeds deployed for incremental share repurchase in 2014.
Currently a part of Emerson’s Network Power business, with 2013 revenue of more than $80 million, Connectivity Solutions is based in Bannockburn, Illinois. The business offers fiber-optic, radio-frequency and microwave-coaxial technologies that safeguard network reliability, with brands including AIM-Cambridge, Johnson, Midwest Microwave, Semflex, Stratos, Trompeter, Viewsonics and Vitelec.
“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,” comments Jamie Froedge, Emerson’s vice president, Acquisitions and Development. “We will work closely to ensure a smooth transition for customers and employees.”