Proactive Investors - Run By Investors For Investors

CUI Global proposes four-company acquisition deal

The combination of CUI Global as the public company platform, along with four privately-held companies, which remained unnamed, would create an energy services company with annual revenue of about $350 million
"Acquisition" street sign
The deal is expected to be announced definitively by June 1

CUI Global Inc (NASDAQ:CUI) signed a non-binding letter of intent late Wednesday to acquire four privately-held companies.

The combination of CUI Global as the public company platform, along with four privately-held companies, which remained unnamed, would create an energy services company with annual revenue of about $350 million. The combined entity intends to be known as Pro Forma CUI and would be led by former Quanta Services CEO Jim O'Neil.

The deal would include issuing 160 million shares of CUI stock, $30 million in cash, a $45 million one-year unsecured sellers note, the assumption of $15 million in outstanding debt and an earn-out payable over 5 years of up to $200 million.

The deal is expected to be announced by June 1.

Shares climbed 3.3% to close at $1.24.

READ: CUI Global subsidiary Orbital Gas Systems showcases new technologies at open house in Houston

The companies include a maintenance and repair services company with clients such as ExxonMobil and Motiva; an infrastructure services provider serving BP, OG+E and Noble Energy; an industrial services firm focused on insulation and related services boasting KBR, Kiewit and Gulf Island Fabrication as customers; and a wireless telecommunications firm focused on site acquisition activities and construction in the Southeastern United States and Puerto Rico with clients including AT&T, MasTec, Nokia and Verizon.

“Having established a presence for CUI Global in the U.S. energy market at our Orbital facility in Houston, we are thrilled to present our shareholders with an opportunity to enhance the company's valuation in the future,” said CEO William J. Clough. 

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

View full CUI profile View Profile

CUI Global Inc Timeline

Article
May 16 2019

Related Articles

Tavistock
December 03 2018
“Our outlook for growth remains positive", said chief executive Brian Raven.
iphone with apps
May 16 2019
The California-based telehealth company is seeking to raise $6 million to scale up its proprietary platform over the next 60 to 90 days
1558424010_HAZER-header-edit.jpg
Tue
Hazer Group is the first listed Australian company to produce clean hydrogen.
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use