Microsemi Acquires Babcock Inc.October 21, 2008 by Jeff Shepard
Microsemi Corp. announced its acquisition of Babcock, Inc., of La Mirada, California. Babcock is described as a leader in the design, development, and manufacturing of power supplies and power conditioning units for satellite, airborne, shipboard, and ground based electronics systems. In addition, Babcock designs, develops, and manufactures aerospace, military, and commercial relays, remote power controllers, contactors, timers, and sensors.
Microsemi expects this acquisition will be immediately accretive. Microsemi paid approximately $20 million in net cash in acquiring all of the shares of Babcock’s parent, Electro Module, Inc.
"Originally founded in 1947, Babcock is one of the leading private players in the high-end, high-reliability dc-dc converter marketplace which makes this one of the most exciting and profitable acquisitions we have made. Not only is the acquisition immediately accretive, but it also expands Microsemi’s opportunity into the dc-dc marketplace, with strong margins, solid growth, and an opportunity to further service our top customers in the aerospace, defense, and satellite markets," stated James J. Peterson, President and Chief Executive Officer of Microsemi Corp..
"We are proud to become a part of the Microsemi team," stated Richard Dixon founder, Chief Executive Officer & Chairman of Babcock, Inc. "We are confident that the combined business will provide incremental value for our customers and employees as well as the opportunity for additional growth as our products and technologies are integrated into Microsemi’s global sales channel."