Knowles to Acquire Cornell Dubilier for $263 Million

by webmaster

Knowles, a provider of micro-acoustic microphones and speakers, has announced its agreement to acquire Cornell Dubilier for $263 million. As part of the deal, Knowles will gain access to Cornell Dubilier’s wide range of high-quality capacitors used in industrial electrification applications.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Adding Value to the Product Portfolio

With an annualized revenue exceeding $135 million and a customer base of over 35,000, Cornell Dubilier brings significant value to the table. The acquisition will enhance Knowles’ product portfolio by incorporating Cornell Dubilier’s array of film, electrolytic, and mica capacitors.

Financial Details

The deal will be an all-cash transaction, with a payment of $140 million made at closing. Additionally, an interest-free seller note of $123 million will be included, which includes a $50 million maturity after one year and the rest maturing after two years. The total fair value of the consideration is estimated to be $250 million.

Funding and Expected Closure

Knowles plans to finance the acquisition through a combination of cash on hand, borrowings from its existing revolving credit facility, and the seller note. The company aims to close the deal in the fourth quarter.

Exploring Strategic Alternatives for Consumer MEMS Microphones

In addition to the acquisition, Knowles is exploring strategic alternatives for its Consumer MEMS Microphones business. This segment focuses on designing micro-electro-mechanical systems microphones that enable voice control communication and audio recording. CEO Jeffrey Niew emphasizes that this is a cash-producing business with unique products and a strong customer base.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Related Articles

Leave a Comment

81 − 72 =