Bel Fuse to acquire Enercon Technologies at $400M enterprise value

Bel Fuse announced that it has entered into a definitive agreement to acquire a majority stake in Enercon Technologies, Ltd. from Fortissimo Capital based on an enterprise value of $400 million. Bel will acquire an 80% stake upfront for $320 million in cash (subject to customary adjustments), plus up to $10 million of potential earnout payments for the 2025-2026 period, with the intent to purchase the remaining 20% by early 2027 based on future EBITDA performance. Transaction highlights include: Expands Bel’s exposure to the aerospace and defense end market from 17.5% to 31% of total revenue, based on last-12-months; Enercon gross margin of 46.0% and Adjusted EBITDA margin of 32.5% for last-12-months, ahead of Bel’s historical margin profile; Expected to be accretive to Bel’s GAAP EPS within one-year post-close, and to Bel’s non-GAAP EPS on Day 1; Expected net leverage of under 2.0x within one quarter from close, as T-bills mature.