Littelfuse (LFUS) to Acquire TVS Diodes Product Portfolio from ON Semi (ON)
- Nasdaq hits record; bank earnings validate Wall St. rally
- Intrawest Resorts (SNOW) Exploring a Possible Sale - Reuters
- Alibaba (BABA) Has No Plans to Acquire Rest of Groupon (GRPN) - Source
- Time (TIME) Said to Soon Begin Discussions with Interested Buyers - Bloomberg
- JPMorgan (JPM) Reports Q4 EPS of $1.71
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Littelfuse, Inc., (Nasdaq: LFUS) announced it has entered into definitive agreements to acquire the product portfolio of transient voltage suppression (“TVS”) diodes, switching thyristors and insulated gate bipolar transistors (“IGBT”) for automotive ignition applications from ON Semiconductor Corporation for a combined purchase price of $104 million. This portfolio has annualized sales of approximately $55 million. The transactions are expected to close in late August, 2016.
“The acquisition of this portfolio aligns with our strategy to expand in power semiconductor applications as well as increase our presence in the automotive electronics market,” said Ian Highley, senior vice president and general manager, semiconductor products and chief technology officer for Littelfuse. “These products have strong synergies with our existing circuit protection business, will strengthen our channel partnerships and customer engagement, and expand our power semiconductor portfolio.”
Littelfuse also plans to invest approximately $30 million in its semiconductor fabrication locations to enhance its production capabilities, add significant capacity to its China fabrication facility and transfer the production of the acquired portfolio. The transfers will occur over the next few years, as the company works with customers on their timing and requirements. The expected productivity gains from this investment will drive long term profitable growth across the company’s semiconductor business.
“Once we complete the transfer of these products, we expect this acquisition to have EBITDA margins of more than 30 percent,” added Meenal Sethna, executive vice president and chief financial officer. “Including amortization, interest and integration expenses, we expect the earnings per diluted share impact of this acquisition to be neutral in 2016, and accretive in 2017 and beyond.”
Wachtell, Lipton, Rosen and Katz is acting as legal advisor to Littelfuse.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Newell Brands (NWL) to Sell U.S. Rubbermaid Consumer Storage Totes Business
- Naked Brand Group, Inc. (NAKD) and Bendon Enter LOI to Merge
- GameStop (GME) Holiday Comps Fall 18.7%, Reiterates Prior Guidance
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions, Spinoffs
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!