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CUI Global completes sale of power business for $32 million in cash

CUI expects to utilize the proceeds from the sale to implement its strategy to build an infrastructure services company

Bel Fuse Inc. - CUI Global Inc completes sale of the majority of its Power business to electrical connector manufacturer Bel Fuse Inc for $32 million in cash
In October, the Oregon-based energy and technology-services company announced the sale of its electromechanical business for $15 million

CUI Global Inc (NASDAQ:CUI) announced Tuesday it has completed the sale of the majority of its power business to electrical connector manufacturer Bel Fuse Inc (NASDAQ:BELFB) for $32 million in cash.

CUI expects to utilize the proceeds from the sale to implement its strategy to build an infrastructure services company and for general corporate purposes, according to a statement.

Bel Fuse, based in New Jersey, designs and manufactures products that power and protect electrical circuits in telecommunications, transportation and other industries. 

READ: CUI Global subsidiary Orbital Gas Systems secures GasPTi orders from leading US energy producer

"With this sale and our previously announced divestiture of our Electromechanical components business, CUI Global has largely exited its former Power & Electromechanical segment businesses. These asset sales were a critical part of our transformation and served to strengthen our balance sheet as we move forward in executing on our energy-centric growth strategy," said CEO Jim O'Neil. 

The sale, which came out of the company’s Power & Electromechanical (P&EM) segment, notably does not include the company’s roughly 20% stake in Virtual Power Systems related to that company's Intelligent Control of Energy software platform. 

The decision is part of a larger shift by CUI to transform the structure of its company. In October, the Oregon-based energy and technology-services company announced the sale of its electromechanical business for $15 million, which also came out of the P&EM segment.

CUI’s stock recently traded up nearly 1% to $1 a share in New York.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham



 

Quick facts: Bel Fuse Inc.

Price: 19.46 USD

NASDAQ:BELFB
Market: NASDAQ
Market Cap: $238.84 m
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