Emerson Electric has agreed to sell its Connectivity Solutions business, currently part of its Network Power unit, to Bel Fuse Inc. for $98 million in cash.
The deal is expected to close in the second quarter, pending regulatory approval. Proceeds will be used for incremental share repurchases this year, company officials said late Friday.
The Bannockburn, Illinois-based Connectivity Solutions business had 2013 revenue of more than $80 million. It has manufacturing facilities in North America, the U.K. and China and has 525 workers worldwide. The Connectivity Solutions business provides fiber optic, radio-frequency and microwave-coaxial networking technologies. Its brands include 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,” Jamie Froedge, Emerson’s vice president of acquisitions and development, said Friday in a statement. “We will work closely to ensure a smooth transition for customers and employees."
Jersey City, New Jersey-based Bel Fuse (Nasdaq: BELFB) manufactures products used in networking, telecommunications, data transmission, aerospace and other industries.
Emerson (NYSE: EMR), led by Chairman and CEO David Farr, reported fiscal second-quarter net earnings of $554 million, down 4 percent from the $578 million reported in the prior year's quarter. Its fiscal second-quarter sales fell 2 percent to $5.8 billion, due in part to the divestiture of its Artesyn Technologies division.
