Bel Fuse Inc. has completed its acquisition of Enercon Technologies, Ltd., acquiring an 80% stake upfront for $320 million, with potential earnout payments of up to $10 million for the 2025-2026 period. The enterprise value of the acquisition stood at $400 million, funded through $80 million in cash and approximately $240 million in incremental borrowings under Bel's revolving credit facility.
Enercon, a leading supplier of power conversion and networking solutions to military and aerospace markets globally, reported LTM Q3 2024 sales of $115 million with a gross profit margin of 47%. The acquisition is expected to expand Bel's product portfolio, particularly in the aerospace and defense markets, and extend its manufacturing footprint to include India and the U.S., as well as gain access to a talented group of engineers based in Israel.
Bel's product groups, which include Magnetic Solutions, Power Solutions and Protection, and Connectivity Solutions, are utilized in various industries such as networking, telecommunications, computing, industrial, data transmission, military, aerospace, transportation, eMobility, automotive, medical, broadcasting, and consumer electronics.
The acquisition of Enercon positions Bel to capitalize on cross-selling opportunities in the future and strengthens its presence in the power solutions segment. Enercon will operate independently under Bel's Bel Power and Solutions segment.
Following these announcements, the company's shares moved 1.7%, and are now trading at a price of $93.35. If you want to know more, read the company's complete 8-K report here.
