St. Louis, Missouri Belden (NYSE:BDC), a world leader in the development of signal transmission solutions, has entered into a definitive agreement to purchase the assets of Lumberg Automation Components GmbH and related entities for an undisclosed cash price. Lumberg is a leading supplier of industrial connectivity products for factory automation machinery with 2006 revenues of approximately $75 million. The company's product scope includes industrial connectors, high performance cord-sets and field bus communication components.
"Lumberg Automation has built an extremely strong brand over its 70-year history and has established itself as an innovator in industrial connectivity for factory automation," said John Stroup, President and Chief Executive Officer of Belden. "They have a strong market position with leading German equipment OEMs and provide both standard and customized solutions to meet the connectivity requirements of a wide range of industrial customers. We believe the addition of Lumberg Automation will complement the industrial connectivity portfolio of the recently acquired Hirschmann Automation and Control and reinforce Belden's leadership in the industrial market. With Belden's expanding global reach and this strong portfolio, we expect to accelerate our revenue growth in the industrial market."
Lumberg Automation is headquartered in Schalksmuhle, Germany and has production facilities in Germany and the United States. The companies expect the transaction to close during the second quarter. Belden anticipates that the transaction will be accretive to 2007 earnings.
Statements in this release other than historical facts are "forward-looking statements" made in reliance upon the safe harbor of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on forecasts and projections about the industries served by the Company and about general economic conditions. They reflect management's beliefs and expectations. They are not guarantees of future performance and they involve risk and uncertainty. The Company's actual results may differ materially from these expectations. Some of the factors that may cause actual results to differ from the Company's expectations include demand for the Company's products; the cost and availability of materials including copper, plastic compounds derived from fossil fuels, and other materials; energy costs; the Company's ability successfully to integrate the acquired businesses; and other factors. For a more complete discussion of risk factors, please see our Annual Report on Form 10-K for the year ended December 31, 2006, filed with the SEC on March 1, 2007. Belden disclaims any duty to update any forward-looking statements as a result of new information, future developments, or otherwise.
Belden is a leader in the design, manufacture, and marketing of signal transmission products for data networking and a wide range of specialty electronics markets including entertainment, industrial, security and aerospace applications. To obtain additional information contact Investor Relations at 314-854-8054, or visit our website at http://www.belden.com.
About Lumberg Automation Components GmbH
Lumberg Automation Components GmbH supplies the industrial sector with automation technology featuring intelligent wiring components such as connector assemblies and distribution systems as well as fieldbus components. Lumberg Automation is owned by The Lumberg Group, a family-owned, globally acting company that originated in Schalksmuhle, Germany, with core competencies in the development, manufacturing and sales of electromechanical and electronic components. For more information, visit www.lumberg.com.