DES PLAINES, Illinois, July 8, 2003 - Littelfuse, Inc. (NASDAQ/NMS:LFUS) today announced it has acquired Teccor Electronics, Inc. from a subsidiary of Invensys plc for $44 million in cash plus a future payment of $5 million contingent on sales of Teccor products reaching $107 million for calendar year 2005.
Teccor, based in Irving, Texas, has annual global sales of approximately $75 million. Teccor manufactures and markets semiconductor products for the telecommunications and industrial market segments. The company manufactures two product groups: a line of transient voltage suppressor devices and a line of power switching devices. Teccor has the number one market share position in North America and is in the top three globally for both product categories.
“We are pleased to welcome Teccor to the Littelfuse family,” said Howard B. Witt, Chairman, President and Chief Executive Officer. “The addition of Teccor’s market-leading line of overvoltage products solidifies our position as the global leader in circuit protection,” added Witt.
“This strategically important acquisition deepens our overvoltage protection offering and strengthens our position in the telecom and industrial market segments,” said David Samyn, General Manager, Electronics Division. “Teccor’s complementary products and value added approach to selling will augment Littelfuse’s capabilities as the world’s leading provider of circuit protection solutions.”
“The last two years have been challenging for Teccor due to their telecom exposure, but both sales and profitability are improving,” said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. “We have an aggressive integration plan that is expected to result in $8-10 million in annual savings within two years. Related to this plan, we will be accruing approximately $6 million for restructuring charges on the opening balance and spending approximately $6 million in capital. Additionally, we will spend approximately $7 million after closing to buy out equipment leases. We estimate that this acquisition will be about $0.10 dilutive to earnings for the remainder of 2003, be roughly neutral to earnings for 2004 and significantly accretive to earnings for 2005.”
“Despite the near-term challenges, this is the right move for Littelfuse,” said Witt. “We are confident in our ability to execute on the cost reduction plan, and both the Littelfuse and Teccor teams are excited about the opportunities that will be created by bringing these two market leaders together.”
Littelfuse is a global company offering the broadest line of circuit protection products in the industry. In addition to its Des Plaines world headquarters, Littelfuse has manufacturing facilities in England, Ireland, Switzerland, Mexico, China and the Philippines, as well as in Centralia, Des Plaines and Arcola, Illinois. It also has sales, engineering and distribution facilities in the Netherlands, Singapore, Hong Kong, Taiwan, Japan, Korea and Brazil.
About Littelfuse Founded in 1927, Littelfuse, Inc., the worldwide leader in circuit protection, offers the industry’s broadest and deepest portfolio of circuit protection products and solutions. Littelfuse devices protect products in virtually every market that uses electrical energy, from consumer electronics to automobiles to industrial equipment. In addition to its Chicago, Illinois, world headquarters, Littelfuse has more than 20 sales, distribution, manufacturing and engineering facilities in the Americas, Europe and Asia. Technologies offered by Littelfuse include Fuses; Gas Discharge Tubes (GDTs); Positive Temperature Coefficient Devices (PTCs); Relays, Controls, and Systems; PulseGuard® ESD Suppressors; SIDACtor® Protection Thyristors; TVS Diode Arrays (SPA™ Family of Products); Switching Thyristors; TVS Diodes and Varistors. The company also offers a comprehensive line of highly reliable Electromechanical and Electronic Switch and Control Devices for commercial and specialty vehicles, as well as underground Power Distribution.
For more information, please visit www.littelfuse.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward looking statements contained herein involve risks and uncertainties, including, but not limited to, product demand and market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development and patent protection, commercialization and technological difficulties, capacity and supply constraints or difficulties, exchange rate fluctuations, actual purchases under agreements, the effect of the company's accounting policies, and other risks which may be detailed in the company's Securities and Exchange Commission filings.