BLUE BELL, Pa., June 11 2004 - C&D Technologies (NYSE: CHP) today announced that it signed a definitive agreement to acquire Datel, Inc. in an all-cash transaction, terms of which were not disclosed.
Datel is a Mansfield, Massachusetts-based manufacturer with sales of approximately $60 million for the twelve months ending March 2004. Datel's business is focused primarily on DC/DC converters, with additional product offerings in digital panel meters and data acquisition components. The acquisition of Datel will provide C&D with a broader product offering, access to a diverse group of Original Equipment Manufacturer (OEM) customers as well as an expanded international footprint, notably, including operations in Japan. Datel has significant market presence in mid-power DC/DC converters, that will expand the total C&D offering, thereby enabling the Company to more fully satisfy customer requirements. When completed, this transaction is expected to be immediately accretive to earnings.
While subject to antitrust clearance and customary closing conditions, the transaction is expected to close in the second quarter.
Wade H. Roberts, Jr., president and chief executive officer of C&D Technologies, stated, "This transaction comports with our plans for growing organically as well as via acquisition. This acquisition expands our customer base, product portfolio and international presence. In this latter regard, Datel's historic strength in Asia and Europe considerably enhances our international position. We look forward to Datel joining C&D while recognizing that this fine company has been extremely successful on its own."
In addition, on May 27, C&D closed the acquisition of Celab Limited, headquartered in Bordon, Hampshire, U.K., in another all-cash transaction for approximately $12 million, net of approximately $3 million in cash acquired. Celab Limited is a provider of power conversion products, predominantly sold into military, cable TV and telecom applications in Europe. The acquisition of Celab provides a platform for expanded sales to the military. In the twelve months ended January 2004, Celab recorded revenues of approximately $10 million. This transaction is also expected to be immediately accretive to earnings.
Both transactions complement C&D's Power Electronics Division, which is a provider of power conversion products and electronic components to technology companies worldwide. By virtue of these combined acquisitions, C&D would expect to nearly triple its power electronics revenue.