Looking to be a one-stop supplier of circuit protection devices, Littelfuse Inc., today acquired Teccor Electronics Inc. from a subsidiary of Invensys plc for $44 million in cash, plus a future $5 million payment subject to Teccor's products reaching $107 million in sales in 2005.
Littelfuse, Des Plaines, Ill., had annual sales of $283 million in 2002, while Teccor, Irving, Texas, generated $75 million in sales last year. Teccor's products-- thyristor overvoltage protection devices-- are expected to help Littelfuse penetrate the growing broadband and DSL market, according to Dave Samyn, general manager of Littelfuse's electronics business.
"Our strategy is to build the strongest portfolio of circuit protection devices," Samyn said. "We can go to customers and be a total circuit protection solutions provider, as circuit protection engineers are going by the wayside or being pulled into other challenges."
Littelfuse's product line includes fuses, polymer PTC fuses, metal oxide varistors, transient voltage suppression diodes, and polymer ESD devices. Samyn said the Teccor acquisition would give Littelfuse a market-leading position in thyristor overvoltage protection devices.
Littelfuse estimates the acquisition would slightly dilute earnings the remainder of 2003, but become significantly accretive to earnings by 2005 as cost savings are realized from combining both companies' manufacturing, R & D, and sales resources.