BEL closes on acquisition of CUI Inc. power assets

JERSEY CITY, N.J., Dec. 03, 2019 – Bel Fuse Inc. (“Bel,” or, “the Company”) (Nasdaq:BELFA and Nasdaq:BELFB), a leading supplier of products that power, protect and connect electronic circuits, today announced that the Company has closed on its previously-announced asset purchase agreement (the “Agreement”) with CUI Global Inc. (Nasdaq:CUI) related to the purchase of the majority of the power business of CUI Inc.

The acquired business had trailing twelve-month sales of approximately $37 million and is expected to be accretive to Bel’s consolidated net earnings by the second quarter of 2020. Gross margins (unaudited) are higher than Bel’s historical range, and the combination is expected to yield annual cost synergies of approximately $500,000. Bel will continue to operate the business from CUI Inc.’s leased ISO 9001:2015-certified facility in Tualatin, Oregon.

The well-known CUI Inc. power brand will join Bel Power Solutions as leading power supply and conditioning brands in the Bel Power portfolio. We believe that the combination of Bel and the CUI Inc. power business will:

• Increase Bel’s presence in the distribution channel, making us the top supplier for power products at one of the major electronic catalog distributors
• Unite complementary capabilities, sales channels and customer relationships
• Broaden our Power Product Portfolio giving us a full range of products to support all our customer power needs
• Enhance our gross margin profile and make a positive contribution to our net earnings
• Provide alternative business models and strategies to analyze and potentially implement on a broader scale
• Produce cost synergies, $500,000 of which have been identified to date

The Company paid $32 million in cash for the CUI Inc. power business acquired under the terms of the Agreement.

About Bel

Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, military, aerospace, transportation and broadcasting industries. Bel's product groups include Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components), Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), and Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies). The Company operates facilities around the world.

Forward-Looking Statements are omitted