Kyoto, Japan, June 20, 2007 - Murata Manufacturing Co., Ltd. today announced that it has signed an agreement with C&D Technologies, Inc. (US) (Headquarter: Pennsylvania; hereinafter "C&D Technologies") to acquire its Power Electronics Division (Main office: Massachusetts; hereinafter "PED") on June 19, 2007 (EDT). The acquisition will be finalized during the first half of FY 2007 upon receiving all necessary legal and regulatory approvals and after fulfillment of the necessary conditions of the acquisition contract.
Purpose of acquisition
C&D Technologies is a power system specialist with its headquarters in the USA. It consists of three divisions: Standby Power Division, Motive Power Division and the aforementioned Power Electronics Division. C&D Technologies develops, manufactures and sells batteries, standby power systems and high-frequency switching power supplies. The main office of PED is located in Mansfield, Massachusetts, USA, and it develops, manufactures and sells electric components including DCIDC converters, ACIDC power supplies, inductors and transformers. It commands an especially high market share for DCIDC converters.
In addition to having a wide range of standard power supply products that Murata does not currently handle, PED is strong in overseas markets that our power supply business has not been able to fully penetrate. Therefore, we believe the acquisition of PED will greatly contribute to filling out our product line-up and entering new markets for our power supply business.
Meanwhile, through joining the Murata Group and sharing our sales network, production technology, and material procurement, we believe that PED will be able to achieve a further expansion of its business and improvement in performance.
Method of acquisition
Under the terms of the agreement, Murata will become the sole owner of the PED business through the acquisition of the six subsidiaries of C&D Technologies which together constitute the PED business. We are currently contemplating the actual scheme for the acquisition. Murata Group has not yet decided on the vehicle for the acquisition.
Acquisition Price
The acquisition price was agreed to be approximately US$85 million. Murata Group intends to finance this acquisition using its own cash reserves.
Schedule to Closing
Upon receiving all necessary legal and regulatory approvals and after fulfillment of the necessary conditions of the acquisition contract, the acquisition of PED is scheduled to be completed during the first half of FY 2007.