Emerson To Sell Connectivity Solutions Business To Bel Fuse For $98 Mln

(RTTNews) - Emerson Electric Co. (EMR) said Friday that it has agreed to sell its Connectivity Solutions business unit to Bel Fuse, Inc. (BELF.A, BELF.B) in a deal valued at $98 million.

The deal 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.

Bel Fuse expects the deal to be immediately accretive to its earnings.

Dan Bernstein, Bel's president, said, "This is 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."