Bel Fuse Inc. will acquire the Emerson Network Power Connectivity Solutions (ECS) business of Emerson Inc. in a $98 million cash deal. Emerson’s ECS business had about $83 million in revenue in 2013. 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, which is headquartered in Bannockburn, Ill., has manufacturing facilities in North America, the U.K. and China and has 525 employees worldwide. The company's customer base is diverse and includes some of the world’s largest manufacturers. It sells many of its products through distribution.
The ECS division comprises Stratos Optical Technologies, Johnson, Trompeter, Midwest Microwave, Semflex, Vitelec Electronics, AIM Electronics and Cambridge Products.
Dan Bernstein, Bel’s president, noted that ECS will be 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,” said Bernstein.
He added that the ECS acquisition is a major step forward in Bel’s strategy to expand into the aerospace and military markets. The addition of the ECS Stratos brand will give the company an industry-leading position in the expanded-beam fiber optic marketplace, according to Bernstein.
“The ECS group also significantly expands our copper-based product offering with the addition of RF/microwave connectors and assemblies,” he said.
The acquisition, which is subject to regulatory clearance and other customary closing conditions, is expected to close in the second quarter of 2014 and to be immediately accretive to Bel’s earnings.