LONDON Murata Manufacturing Co., Ltd. is to buy C&D Technologies Inc's power electronics division (PED) for $85 million in cash.
The price is subject to customary working capital adjustments and the transaction is subject to regulatory and other approvals. The deal is expected to be completed by September.
PED (Mansfield, MA) has annual revenues of over $185 million and manufactures dc/dc converters, ac/ac power supplies, magnetics, data acquisition devices and panel meters.
Murata (Kyoto, Japan) already makes integrated electronic modules, including power supplies as well as ceramic based components and sensors. Murata said it and the C&D unit are an ideal match since Murata is active in the Japanese dc-dc converter market, while the division of the Pennsylvania-based company has strength in the European and U.S. markets.
“This transaction allows the power electronic division to bring a broader range of products to our existing customers, enables a new range of customers for our existing products and will improve our overall global competitiveness,” said Dr. William Bachrach, general manager of PED.
“The sale of our power electronics division to Murata delivers a good outcome to C&D shareholders by providing the company with liquidity to de-lever its balance sheet, fund important cost reduction programs and invest in additional growth initiatives within our power systems division,” said Dr. Jeffrey Graves, president and chief executive officer of C&D (Blue Bell, PA.).
C&D Technologies, Inc. provides solutions and services for the switchgear and control (utility), motive (material handling), telecommunications, and uninterruptible power supply (UPS) as well as emerging markets such as solar power.
PED supplies standard and modified-standard electronic power supply systems to OEMs of telecommunications and networking equipment, as well as office and industrial equipment. The division also manufactures power conversion products sold into military and CATV applications as well as digital panel meters and data acquisition components. C&D Technologies' unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition.
PED's European HQ is in Milton Keynes with other offices in Munich, Germany and Montigny Le Bretonneux, FranceCopy Ends.
C&D Technologies acquired the power systems division of electronic manufacturing services provider Celestica Inc. (Toronto, Canada) in September 2004 which brought it a broad line of dc/dc and ac/dc power supplies. Earlier in 2004, C&D acquired Datel Inc. (Mansfield, Mass.) and Celab Ltd (United Kingdom), both of which were integrated with C&D's power electronics division.