Technitrol has sent a letter to the board of birectors of Bel Fuse offering to acquire the company for $40.30 per share, or $480 million, in cash. According to Technitrol, combining the two companies would create a world-leading electronic component producer well positioned to capture profitable growth opportunities across a variety of markets for magnetics, modules and interconnect products.
The offer price represents premiums of 38% and 21% to the closing prices on Thursday, March 22, 2007 of Bel Fuse’s Class A and Class B shares, respectively. The all-cash offer exceeds the highest price achieved by either class of stock during the past two years. Technitrol would finance the transaction with cash on hand and debt. The company also offered to provide part of the consideration in Technitrol stock, should Bel Fuse so desire.
Technitrol produces electronic components, electrical contacts and assemblies and other precision-engineered parts and materials. Bel Fuse manufactures and supplies magnetics-based components and modules, interconnect products and circuit protection devices. According to Technitrol, Bel Fuse’s product lines strongly complement those of Technitrol’s Electronic Components Group in several markets, including networking, telecommunications and automotive.
“The combined company will be a larger, stronger electronic components business able to deliver an expanded product offering more effectively and efficiently to a larger customer base in a wide range of industries,” said Technitrol Chairman and Chief Executive Officer James M. Papada, III. “We have identified several areas where we believe we can realize significant cost and expense savings, such as the integration of our sales forces and administrative functions.”