Vishay Closes Acquisition of BCcomponents

March 03, 2003 by Jeff Shepard

Vishay Intertechnology Inc. (Malvern, PA) has agreed to acquire BCComponents International BV (the Netherlands), a leading manufacturer of passive components. The product lines of BCcomponents include linear and non-linear resistors; ceramic, film and aluminum electrolytic capacitors; and switches and trimming potentiometers.

BCcomponents had annual sales in 2001 of approximately $320 million. Vishay acquired the outstanding shares of BCcomponents in exchange for 10-year warrants to acquire 7,000,000 shares of Vishay common stock at an exercise price of $20 per share, and 10-year warrants to acquire 1,823,529 shares of Vishay common stock at an exercise price of $30.30 per share. In the transaction, outstanding obligations of BCcomponents, including indebtedness and transaction fees and expenses, in the amount of approximately $224 million were paid or assumed.

Felix Zandman, chairman and CEO of Vishay, stated, "We are pleased that the acquisition closed smoothly and on schedule, and we expect to quickly begin integrating the operations of BCcomponents with our passive component business in Europe and elsewhere around the world. As we said when we first announced the transaction, the acquisition of BCcomponents gives us an extensive portfolio of new products, complements our MLCC and tantalum capacitor lines, offers meaningful opportunities for synergies and cost savings, and enhances our position in passive components generally. We are therefore very excited about the opportunities presented by this acquisition, which is our first major acquisition in the passive area in 10 years."