EL SEGUNDO, Calif., Nov 01, 2006 -- International Rectifier Corporation (IR) (NYSE:IRF) today announced an agreement for the sale of its Power Control Systems (PCS) business to Vishay Intertechnology, Inc. The PCS business accounted for approximately $300 million, or about 26 percent of revenue, in IR's June-ending fiscal year 2006. The PCS business includes the company's Non-Focus Products business and complementary component revenue from the company's Focus Products business. Product lines included in the transaction include certain discrete planar MOSFETs, discrete diodes and rectifiers, discrete thyristors, and automotive modules and assemblies. The PCS business is being sold for approximately $290 million in cash. The agreement is subject to customary closing conditions, including obtaining all necessary governmental approvals and clearances, and finalization of schedules and other related documentation. Signing of definitive agreements is expected to take place by Friday, November 10, 2006, and the transaction is expected to close in February 2007.
International Rectifier CEO Alex Lidow said, "The divestiture enables the company to concentrate more fully its resources and assets on its Focus Products business and more readily achieve IR's long-term profit margin goals. The benefits include improving our ability to further accelerate IR's transition to high-performance analog, digital, and mixed-signal ICs, and other advanced power management products. These product families have allowed IR to capitalize on significant opportunities in some of the largest and fastest growing markets for power management, including the newest generation of game stations and servers."
IR's Focus Products revenue was approximately $890 million in the company's most recent fiscal year and was centered on high-performance power management solutions in applications such as the newest generation of game stations, servers, and notebooks, as well as energy-efficient appliances, automotive, digital TVs, and aerospace and defense systems.
For Vishay, the acquisition extends its product offering in discrete semiconductors and modules, while enhancing its strong position as one of the industry's largest manufacturers of discrete semiconductors and passive components. Furthermore, this acquisition will provide Vishay with synergies in the area of modules by combining Vishay components with the product lines to be acquired from International Rectifier. This divestiture enables International Rectifier to concentrate more fully its resources and assets on its Focus Products business, which includes high-performance analog, digital, and mixed-signal ICs, and other advanced power management products.
About International Rectifier
International Rectifier (NYSE:IRF) is a world leader in power management technology. IR's digital, analog and mixed signal ICs, and other advanced power management products, enable high-performance computing and reduce energy waste in a wide variety of products used in business and consumer applications. Leading manufacturers of computers, energy efficient appliances, lighting, automobiles, satellites, aircraft, and defense systems rely on IR's power management solutions to power their next generation products. For more information, go to www.irf.com.
About Vishay Intertechnology
Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, rectifiers, transistors, and optoelectronics and selected ICs) and passive electronic components (resistors, capacitors, inductors, sensors, and transducers). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, and medical markets. Its product innovations, successful acquisition strategy, and ability to provide "one-stop shop" service have made Vishay a global industry leader. Vishay can be found on the Internet at http://www.vishay.com.