Bel Fuse Inc. (NASDAQ: BELFB) recently announced the successful completion of its acquisition of an 80% stake in Enercon Technologies, Ltd. The transaction was finalized on November 14, 2024, following the agreement signed on September 18, 2024. The acquisition, valued at $320 million with potential additional earnout payments of up to $10 million for the 2025-2026 period, marks a significant step for Bel Fuse Inc.
To fund the acquisition, Bel paid an aggregate of approximately $325.6 million in cash on the closing date. This included utilizing cash reserves of around $85.6 million, along with additional incremental borrowings of approximately $240 million under the company’s revolving credit facility, which was amended in connection with the transaction.
As part of the acquisition, Bel has the current intention to purchase the remaining 20% stake in Enercon by early 2027. The transaction is subject to the terms and conditions outlined in the Shareholders’ Agreement, which governs the relationship between Bel Power Solutions s.r.o. and FF3 Holdings, L.P., as shareholders of Enercon.
The Shareholders’ Agreement includes a put-call mechanism granting Bel the option to acquire the remaining 20% interest in Enercon. It outlines specific conditions for exercising the call options and provides a framework for the governance of Enercon post-acquisition.
In conjunction with the acquisition, Bel also entered into a Third Amendment Agreement to its existing Credit Agreement, increasing the Maximum Revolving Amount from $175 million to $325 million. This amendment facilitated the financing of the transaction and allowed for incremental borrowings to support the acquisition.
Bel Fuse Inc. issued a press release on November 14, 2024, to announce the successful closing of the transaction. The company will file the required financial statements and pro forma financial information related to the acquisition in due course as regulatory obligations dictate.
The completion of this acquisition signifies a strategic move by Bel Fuse Inc. to enhance its position in the aerospace and defense markets, further expanding its portfolio and capabilities in providing advanced power conversion solutions.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Bel Fuse’s 8K filing here.
About Bel Fuse
Bel Fuse Inc designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries.
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