Net Cash Proceeds Will Be Deployed For Higher 2014 Share Repurchase
ST. LOUIS, May 16, 2014 – Emerson (NYSE: EMR) today announced that it has agreed to divest its Connectivity Solutions business unit to Bel Fuse, Inc. (NASDAQ: BELF.A and BELF.B). 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 industry-leading 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,” said Jamie Froedge, Emerson’s Vice President, Acquisitions and Development. “We will work closely to ensure a smooth transition for customers and employees.”
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2013 were $24.7 billion. For more information, visit www.Emerson.com.