JERSEY CITY, N.J. March 24, 2003 - Bel Fuse Inc. (Nasdaq:BELFA)(Nasdaq:BELFB) announced today that it closed the previously announced acquisition of the passive components group from Insilco Technologies, Inc.
On December 16, 2002, Bel announced a definitive agreement to acquire the assets of the passive components business from Insilco Technologies, Inc. for approximately $35 million in cash and the assumption of certain liabilities. The agreement to acquire the assets of Insilco Technologies subsidiaries Stewart Connector Systems, Inc., InNet Technologies, Inc., and Signal Transformer Co., Inc., was approved by the United States Bankruptcy Court, District of Delaware on March 7, 2003. The transaction has closed and the acquired businesses now operate as Bel companies.
Daniel Bernstein, President, said, "The purchase of Insilco's passive components group is a logical strategic fit with Bel's current products and markets. We believe this acquisition strengthens Bel and enables us to offer a larger customer base a wider breadth of products. With the increased diversification of our product line, Bel becomes a more attractive supplier to current customers seeking a greater variety of products."
To illustrate the strategic value of this acquisition, both Bel and the acquired Stewart Connector Systems are leaders in the high-growth Integrated Connector Module (ICM) market. Consolidating the engineering, manufacturing and sales capabilities of Bel and Stewart will help improve Bel's product leadership and growth rate in this important market. Bel's expertise in electrical engineering and high-volume, low-cost manufacturing complements Stewart's strengths in mechanical design and engineering.
As an example of the increased diversification this brings to Bel's product line, the Signal Transformer acquisition adds a new market -- custom and high-frequency transformers -- and thousands of new customers to Bel's business. Additionally, Bel expects to leverage the well-established Signal Transformer brand name to develop a magnetics distribution business serving current customers who are looking for a "one-stop magnetics shop" specializing in lower-volume builds and orders."
The acquisition also increases Bel's manufacturing capacity, especially in China, where expansion plans were already underway to meet the growing demand for Bel products. The enhanced manufacturing capacity and the acquisition of Insilco's passive components group is expected to increase Bel's market presence and customer base in Europe. In combination with the December 23, 2002 acquisition of the Communications Products Division of APC, we expect that Bel's reach and results should improve in key European and world markets.
"We are very pleased to welcome the Insilco passive component group of companies and their customers to Bel and we look forward to quickly integrating the businesses and providing a greater range of high-quality products to current and new customers," concluded Bernstein.
About Bel
Bel (www.BelFuse.com) and its subsidiaries are primarily engaged in the design, manufacture and sale of products used in networking, telecommunications, high speed data transmission, automotive and consumer electronics. Products include magnetics and connectors for voice and data transmission, fuses, DC/DC converters, delay lines and hybrid circuits. The Company operates facilities around the world.
Forward-Looking Statements are omitted