The Bel group, known widely by its flagship company Bel Fuse, is making several growth moves that include expansion of the magnetic products portfolio at Signal Transformer, and plans to acquire electronics manufacturer Enercon Technologies in a deal valued at $400 million.
Signal Transformer, a Bel group company, is strengthening its portfolio of magnetic solutions. Over the past three years, Signal has introduced more than 1,200 new products into the global market, including chokes, inductors, and custom or modified standard products. This milestone underscores Signal’s 50+-year legacy in transformer design and manufacturing, serving markets such as medical, lighting, audio and safety.
Based out of Lynbrook, New York, Signal has strategically broadened its manufacturing operations to include facilities in the United States, the Dominican Republic, and Asia enabling it to serve customers worldwide. It has been awarded a broad range of regulatory certifications including UL, CSA, TUV, VDE, IEC, and CE. The company’s on-site CSA-certified ISL 17025 engineering laboratory, enables rapid testing, evaluation, and certification of new custom transformer designs, significantly reducing lead times from months to days. Since its launch in 1959, the company has developed a comprehensive range of transformers, inductors, chokes, coils and custom designs.
On September 18, Bel announced that it is planning to acquire Enercon Technologies in a $400 million deal that will expand Bel’s presence in aerospace and defense markets. Enercon is also a regular provider of electronics for the medical device market. Bel has entered into a definitive agreement to acquire a majority stake in Enercon from Fortissimo Capital based on an enterprise value of $400 million. Bel will acquire an 80% stake upfront for $320 million in cash plus other potential earnout payments. The transaction will expand Bel’s exposure to aerospace and defense markets from 17.5% to 31% of total revenue along with higher average profit margins.
Enercon supplies highly engineered power conversion and networking solutions to aerospace and defense markets globally across air, land and sea applications. The acquisition will allow Bel to extend its product portfolio supporting the aerospace and defense markets to include power solutions. Bel’s manufacturing footprint will expand further into India and the U.S. and there will be new manufacturing capabilities and a talented group of engineers based in Israel. The transaction is expected to be completed by the end of 2024. Plans call for Enercon to operate independently under the Bel Power and Solutions segment.
Enercon is headquartered in Netanya, Israel with manufacturing sites also located in North America and India. The company typically operates as the sole supplier of its products. The full business has sales of about $111 million in this year’s second quarter with gross profit margin of 46%. It has about 400 employees operating from six global facilities.
Bel designs, manufactures and markets a broad array of products that include circuit protection, connectors, cable assemblies, discrete components, magnetics, and power supplies. The company serves a global market and operates facilities around the world. For more info, see www.belfuse.com, www.enercon.co.il.
