Net cash proceeds will be deployed for higher 2014 share repurchase
St. Louis, May 16, 2014 - Emerson announced that it has agreed to divest its Connectivity Solutions business unit to Bel Fuse, Inc. The transaction, valued at 98$ million, is expected to close before the end of the fiscal year, with proceeds deployed for incremental share repurchase in 2014.
Currently a part of Emerson's Network Power business, with 2013 revenue of more than $80 million, Connectivity Solutions is based in Bannockburn, Illinois. The business offers industry-leading fiber optic, radi-frequency, microwave-coaxial technologies that safegueard network reliability, with brands including AIM-Cambridge, Johnson, Midwest Microwave, Semflex, Stratos, Trompeter, Viewsonics, and Vitelec.
"Although the business no longer aligns with our long term strategy to strengthen our core global franchises, it offers Bel attractive growth opportunities and is consistent with its strategic direction," said Jamie Froedge, Emerson's Vice President, Acquisitions and Development. "We will work closely to ensure a smooth transition for customers and employees."
For more information, visit www.Emerson.com.