C&D Technologies Agrees to Sell Power Electronics Division to Murata Manufacturing for $85 Million
C&D Technologies, Inc. announced the signing of a definitive agreement to sell its Power Electronics Division (PED) to Murata Manufacturing Co., Ltd. of Japan (Murata) for $85 million cash, subject to customary working capital adjustments. The transaction is subject to regulatory and other approvals.
With annual revenues of over $185 million, C&D’s PED is a leading manufacturer of dc-dc converters, ac-dc power supplies, magnetics, data acquisition devices and panel meters. PED’s global customer base includes many Tier I electronics manufacturers.
Murata is a leading provider of ceramic based components, sensors and integrated electronic modules, including power supplies. The company, headquartered in Kyoto, Japan, has over 29,000 employees worldwide and over $4.8 billion in annual sales.
Dr. William Bachrach, General Manager of PED commented, "This transaction allows the Power Electronic Division to bring a broader range of products to our existing customers, enables a new range of customers for our existing products and will improve our overall global competitiveness. Our combination with Murata provides a powerful platform for the future. We are honored to be joining such a respected and longstanding force within the electronics industry."
"The sale of our Power Electronics Division to Murata delivers a good outcome to C&D shareholders by providing the company with liquidity to de- lever its balance sheet, fund important cost reduction programs and invest in additional growth initiatives within our Power Systems Division," stated Dr. Jeffrey Graves, President and Chief Executive Officer. "At the same time, our valued power electronics customers can look to a strong future knowing that PED will have additional resources to continue to meet and exceed the needs of their business."
As a result of the signing of this agreement, PED will be reflected in C&D’s future consolidated financial statements as a discontinued operation.
